AXA Investment Managers (AXA IM) has added a Long Term Credit Fund with over USD1 billion in assets to the Asset Management Exchange (AMX), a platform for investors and asset managers.
The fund uses AXA IM’s ‘Buy and Maintain’ capability to build a well-diversified, benchmark-agnostic, long-dated credit portfolio that delivers predictable cash flows. The Buy and Maintain approach aims to drastically reduce transaction costs, and more importantly prevent the schemes becoming a forced seller during a market sell off.
Oliver Jaegemann, CEO of AMX, says: “In today’s environment pension funds want to ensure that their portfolio is suited to the current market conditions and that it also reflects the outcomes that they seek. Pressure on cost transparency is driving pension funds to review the value they are generating in exchange for the total costs they are paying.
“‘Buy and maintain’ approaches are more cost effective for many schemes, generating lower transaction costs and offering fees that are lower than active management. Implementing this via AMX can be even more cost effective by lowering total costs compared to higher trading-volume approaches.”
Sebastien Proffit, Head of Portfolio Solutions, Fixed Income at AXA Investment Managers, says: “Over the last two years we have seen large schemes implementing segregated mandate to meet the cashflow negativity challenge. We are now please to launch the Long Term Credit Fund on the AMX platform in order to provide schemes of all size with the certainty they need to deliver on their long-term objectives.”
