The Luxembourg-domiciled Axa World Funds Global Credit Bonds Fund will be lead-managed by Nicole Montoya, while Axa’s UK, US and European credit teams will make significant input into the fund.
It has been structured to benefit from two different sources of performance – regional bond allocation and a strategic overlay using credit indices.
The overlay strategy will be to apply combinations of long/short derivative positions, to ensure effective proactive adjustments to the portfolio’s geographical allocation. Axa IM said this will ensure views are implemented in the portfolio quickly and inexpensively as the overlay removes the requirement to sell and buy other assets and the need for currency exchange. The credit indices overlay strategy will be carried out both strategically and tactically.
Theodora Zemek, Global Head of Fixed Income, AXA Investment Managers commented: “Bond, capital structure rating and sector selection are where our key strengths lie and thus where the bulk of our performance emanates from.
“However, we are seeking performance for this portfolio from two different sources. The first is through an allocation to local managers, which allows them full autonomy to manage risk in their own time zone. The second, by applying a tactical and strategic overlay with derivatives.”
