AXA IM has launched the AXA WF Global Flexible Property fund, a Luxembourg-domiciled Sicav exposed to long term return opportunities of direct property.
The fund invests in listed equity and debt instruments from global publicly traded real estate companies. Equities account for 60% in the asset allocation and the remaining 40% are invested in debt.
“The manager has the flexibility to change the asset allocation mix of the fund and reduce or increase equity exposure according to the property cycle, with the aim of reducing overall volatility,” said AXA IM.
Towards the launch of this fund, AXA IM expects to implement its real estate range of products and expertise with the ambition of becoming “Europe’s leading asset manager for listed real estate”.
The team managing the fund comprises professionals from both AXA IM and its subsidiary AXA Real Estate.
Frédéric Tempel, global head of Listed Real Estate at AXA IM and lead manager on the fund commented : “Property holds a lot of appeal as an asset class with strong historical performance and resilient income, however, investors have previously had to choose between illiquid physical real estate, and liquid yet often volatile real estate equities. AXA WF Global Flexible Property fund represents another option for investors aiming to provide exposure to the return profile of physical real estate assets but with better liquidity and reduced volatility compared to equity markets.
“Mixing real estate equity and debt instruments in one liquid strategy is a relatively recent investment opportunity. The disintermediation of banks following the global financial crisis has created a much deeper market for real estate debt. Following this approach and investing in the full range of liquid instruments issued by property companies worldwide, we expect to mimic unlevered returns of directly held property and offer investors a more flexible option for investing in property.”
The fund will be diversified across geographic regions (Americas, Europe and Asia Pacific) and real estate sub-sectors. It has both retail and institutional share classes and is currently registered in the UK, Austria, Belgium, Denmark, Finland, France, Germany, Italy (institutional), Luxembourg, Spain, Sweden and the Netherlands.