Combining the resources of both Axa Investment Management and its subsidiary Axa Real Estate, the AXA WF Global Flexible Property Fund aims to provide investors with a return profile similar to that of a direct real estate investment but with lower volatility and higher liquidity.
A Luxembourg domiciled SICAV, the fund can invest in a global universe of both publically listed property equity and debt instruments and has an allocation target of 60% equity and 40% debt, Axa said.
Frédéric Tempel, global head of listed real estate at AXA IM is lead manager on the fund and is of the view that the new fund provides investors with an option that sits between illiquid physical real estate and liquid but often volatile real estate equities.
“Mixing real estate equity and debt instruments in one liquid strategy is a relatively recent investment opportunity,” he said, pointing out that “the disintermediation of banks following the global financial crisis has created a much deeper market for real estate debt.
“Mixing real estate equity and debt instruments in one liquid strategy is a relatively recent investment opportunity,”
“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,” he said.
With both retail and institutional share classes, the fund is currently registered in the UK, Austria, Belgium, Denmark, Finland, France, Germany, Italy (institutional), Luxembourg, Spain, Sweden and the Netherlands, Axa said.
