Last updated: 07:35 / Monday, 27 July 2015
European Credit Market

AXA IM Launches Euro Credit Total Return Fund

AXA IM Launches Euro Credit Total Return Fund
  • Aims to provide flexible access to the European credit market
  • Seeks value across the credit cycle to enhance returns

AXA Investment Managers has announced the launch of the AXA World Funds Euro Credit Total Return (the Fund). This is the latest addition to AXA IM’s euro credit range, which now has a total AuM of €8.6 billion of assets.

The fund manager aims to deliver a risk-adjusted return superior to market segmented performance over the credit cycle. The fund offers investors an unconstrained approach to the European credit market, with the ability to deviate substantially from what is considered the market benchmark in terms of portfolio composition. The portfolio’s construction is based on diversified allocation across three risk buckets, including defensive, carry and value, which have been defined by their intrinsic fundamental and market drivers. The fund has ample flexibility to modulate its risk profile across the credit cycle to optimise returns.

Ismael Lecanu, Senior Portfolio Managerof the AXA WF Euro Credit Total Return commented: “With strong structural support provided by the European Central Bank, we are constructive on the outlook for the European recovery and believe that there are ample investment opportunities thanks to disintermediation, innovation and regulation. These opportunities call for a flexible approach as they shift the market behaviour. The Euro Credit Total Return fund builds on the success of our AWF Euro Credit Plus flagship fund and its superior risk-return across the challenging banking and periphery crisis. It offers an unconstrained approach, which we believe suits the current market environment and aims to maximise returns. The strategy enables our clients to benefit from a more concentrated approach that truly reflects our high convictions.

Supporting Ismael Lecanu is a dedicated team of five euro credit specialists averaging 13 years’ experience. The team has in-depth knowledge of the European credit market and strong relationships with key issuers.

Anne Velot, Head of Euro Credit at AXA IM, added: The eurozone credit market is becoming increasingly diverse. Despite political uncertainties in the region, we believe that the market remains attractive as European companies have maintained a disciplined management of balance sheets and cash flows since the crisis. We are seeing significant demand from clients for a non-benchmarked approach aimed at maximising total returns through income and growth.The AXA WF Euro Credit Total Returnresponds to this demand, following a disciplined, fundamentally-driven investment process, backed by our long-term proven capability in credit selection and macro positioning.”

AXA WF Euro Credit Total Returnis a Luxembourg-domiciled SICAV. The fund has both retail and institutional share classes and is currently registered in the following countries: Austria, Belgium, Denmark, France, Germany, Italy (institutional only), Luxembourg, The Netherlands, Spain, Sweden and the UK.

AXA IM is a market leader in euro credit fixed income strategies, where the investment team carries out active tactical allocation across the full spectrum of euro corporate credit, both investment grade and high yield. The team's access to markets is supported by AXA IM's critical size and globally-recognised credit expertise. AXA IM has €460 billion in fixed income assets managed globally, of which €360 billion in credit.