AXA Investment Managers is catering to client demand for unconstrained European credit strategies with the launch of a new fund.
The AXA World Funds Euro Credit Total Return fund will be managed by senior portfolio manager Ismael Lecanu and supported by a team of five euro credit specialists.
Lecanu will diversify allocation across three risk profiles, defensive, carry and value. He will take an unconstrained investment approach, targeting a risk-adjusted return that is superior to the market over the credit cycle.
AXA IM declined to disclose an official target return figure.
Head of European credit Anne Velot said the firm had decided to launch the fund after receiving ‘significant’ demand from clients for a non-benchmarked approach.
‘The eurozone credit market is becoming increasingly diverse,’ she said. ‘Despite political uncertainties in the region, we believe the market remains attractive, as European companies have maintained a disciplined management of balance sheets and cash flows since the crisis.’
The fund’s institutional share class will have what the group described as a ‘maximum annual management fee’ of 0.45%. For the ‘F’ share class it is 0.55%.
The AXA WF Euro Credit Total Return is a Luxembourg-domiciled SICAV. It has both retail and institutional share classes and is currently registered in the following countries: Austria, Belgium, Denmark, France, Germany, Italy (institutional only), Luxembourg, The Netherlands, Spain, Sweden and the UK.