AXA IM launches multi-asset fund for income generation
AXA Investment Managers (AXA IM) has announced the launch of the AXA WF Global Income Generation, a multi-asset fund which aims to provide regular income through yielding assets from quality issuers and long-term capital growth.
AXA WF Global Income Generation has decided to take an unconstrained, multi-asset approach to generate income, balancing higher yielding assets with long-term investments for capital growth, the firm said.
The investment process combines the bottom up portfolio construction with our ‘3D approach’ – diversification, dynamic asset allocation and downside risk mitigation.
The former aims to provide the reassurance of asset quality; securities are selected with a focus on the issuer’s financial strength rather than just valuation levels. The latter combines broad diversification in terms of asset classes and underlying securities with a proactive and flexible approach to asset allocation and risk mitigation.
This unconstrained approach enables the fund to swiftly adapt to market conditions. Active risk management is embedded in the investment process and ensures downside risk is monitored at all levels.
The fund will offer a diversified asset mix across fixed income (e.g. global investment grade credit, EMU investment grade credit, global high yield, global emerging market short duration and global index-linked bonds), equity (e.g. global developed equity high dividend, global emerging equity, global equity healthcare and global equity commodities) and global real estate and other asset classes, the firm said.
AXA WF Global Income Generation is managed by Anne Gagliardini part of AXA IM’s Flexible Balanced team. The Fund therefore benefits from a dedicated group of four senior portfolio managers as well as the extensive shared resources of AXA IM’s multi-asset investments, fixed income, equity, research and investment strategy teams.
AXA WF Global Income Generation is a Luxembourg-domiciled Sicav. The fund has both retail and institutional share classes and is currently registered in Luxembourg. AXA IM is considering registration across a number of other European countries.
Serge Pizem (pictured), global head of Multi-Asset Investments at AXA IM, said: “With interest rates at historic lows and many traditional investments not currently providing yields that can keep pace with, let alone outpace inflation, there is a need for investors to go beyond traditional income strategies. This ‘search for income’ is especially acute as people look to maintain living standards over the course of a much longer retirement period.
“Yielding assets tend to demonstrate cyclical and volatile behaviour and high income is often achieved at the expense of asset quality or asset growth. AXA WF Global Income Generation aims to provide regular income by taking an approach which balances higher yielding assets with growth orientated capital investments providing some inflation buffer. Our security selection and ‘3D approach’ seek to generate sustainable income and mitigate the impact of market shocks on the portfolio.”