Axa IM launches short maturity CLO opportunity fund

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AXA Investment Managers (AXA IM) has announced the launch of a short maturity CLO opportunity fund.

A net total return of 4 to 6% is expected by investing in the vintage US collateralised loan obligations universe (CLO 1.0s) whilst maintaining an investment grade average rating. Collateralised loan obligations (CLO) are securities backed by debt.

Christophe Fritsch (pictured), co-head of Securitised and Structured Assets and head of Structuring at AXA IM said: “The fund was immediately popular with a wide range of clients including family offices, pension funds and insurance companies and we expect to reach a $250m in the short term.”

“We had to act quickly to capture this short window of opportunity for investors as the majority of these types of CLOs are coming close to the end of their term,” he added.

“CLO 1.0 mezzanine debt tranches suffered no losses during the global financial crisis and are even more robust now. Similarly considering the significance of the credit enhancement compared to the potential defaults of the underlying assets the probability of deterioration in credit quality of the portfolio is minimal,” Fritsch added.

AXA IM’s fund, managed in Paris, offers monthly liquidity and is available in both euros and dollars. It has been marketed in the UK, France, Belgium, Italy, Luxembourg and the Netherlands.

The securitised and structured assets team of AXA IM manages €13.3bn.
 

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