AXA IM Alts launches ABS liquid strategy
AXA IM Alts has launched a new asset-backed securities (ABS) liquid strategy.
The €183bn (£154bn) alternative asset manager said that the AXA IM Investment Grade ABS Fund is its most liquid ABS offering to date, featuring daily dealing.
The new fund is targeting an AA average rating credit quality portfolio through investing in investment-grade secured assets such as corporate credit, real assets and collateralised loan obligations.
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The asset manager heralded the diversification of the asset class, with low correlated returns and limited drawdowns compared to traditional investment grade credit assets.
“Through different cycles, ABS has demonstrated resilience and robustness as an asset class,” said Deborah Shire, deputy head of AXA IM Alts.
“This has led to growing interest and investors’ appetite for ABS solutions. This launch expands our offering to meet evolving investor needs. As an established player with a long heritage in managing ABS solutions, our selective, disciplined approach to investing in ABS assets will also provide our investors with substantial diversification benefits and attractive potential returns.”
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Christophe Fritsch, global head of alternative credit at AXA IM Alts, said that the fund was launched in response to investor demand for solutions that offer diversified exposure to ABS.
“Institutional investors’ strategic allocations are typically more exposed to corporate credit assets and less exposed to granular consumer portfolios,” he added. “This fund will allow investors to easily integrate into their strategic asset allocation consumer assets that support the economy by financing households. The fund’s added diversification benefits and interesting spread pick up characteristics can work to improve the efficient frontier and the quality of investors’ portfolios.”
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