The fund is managed by senior portfolio manager Ismael Lecanu, who aims to offer investors an unconstrained approach to European credit, with the ability to ‘deviate substantially’ from the market benchmark in terms of portfolio composition.
The Luxembourg-domiciled SICAV’s portfolio construction is based on diversified allocation across three risk buckets; defensive, carry and value.
“With strong structural support provided by the European Central Bank, we are constructive on the outlook for the European recovery and believe that there are ample investment opportunities thanks to disintermediation, innovation and regulation,” Lecanu said.
“The Euro Credit Total Return fund builds on the success of our AWF Euro Credit Plus flagship fund and its superior risk-return across the challenging banking and periphery crisis. It offers an unconstrained approach, which we believe suits the current market environment and aims to maximise returns. The strategy enables our clients to benefit from a more concentrated approach that truly reflects our high convictions.”
“The eurozone credit market is becoming increasingly diverse, said Anne Velot, head of euro credit at Axa IM. “Despite political uncertainties in the region, we believe that the market remains attractive as European companies have maintained a disciplined management of balance sheets and cash flows since the crisis. We are seeing significant demand from clients for a non-benchmarked approach aimed at maximising total returns through income and growth,” she added.
