AXA IM launches CLO credit fund
AXA Investment Managers (AXA IM) has announced the launch of the AXA IM Novalto-CLO Credit Fund.
The fund invests in debt tranches of collaterised loan obligations (CLO) and seeks to provide net annualised returns of 6 to 8% with annual volatility of 3 to 5%.
The fund primarily exploits opportunities in spreads’ gaps stressed among debt tranches of CLO issued in dollars or euros.
The fund, managed by the teams of AXA IM Structured Finance, dwells in a SIF vehicle domiciled in Luxembourg and offers monthly liquidity to investors.
The strategy is available in the following countries : Germany, France, Belgium, Denmark, Finland, Italy, Luxembourg, Sweden, Switzerland, Netherlands and the UK.
Christophe Fritsch, co-head of Securitised and Structured Assets and head of Structuring at AXA IM, said that CLO debt tranches form an appealing opportunity in the current market environment.
He added that the macro-economic context, in particular the drop in oil prices and recent sales done by hedge funds, is driving the widening of CLO’s spreads.
Fritsch said the the first client of this new CLO fund has invested more than $50m (€44m) and that investors from pension funds and family offices based in Switzerland, Germany and the Nordics will soon follow.
The teams of AXA IM Structured Finance have around €21.8bn in assets under management. Since 2000, the firm has invested over $17bn (€15bn) in the CLO market.