AXA IM Alts expands Global Secured Assets capabilities with launch of new strategy
AXA IM Alts, a global leader in alternative investments with c. €163 billion1 of assets under management, has expanded its suite of Secured Finance solutions for pension fund clients, with the launch of a new Global Secured Assets (GSA) Strategy.
The new strategy invests through an open-ended vehicle across a wide range of assets in both public and private markets to provide clients with a diversified portfolio of global secured finance assets, delivering yield pick up over traditional credit, while focusing on capital preservation.
The strategy leverages the expertise of AXA IM Alts’ Real Assets and Structured Finance teams, to build a blended portfolio of consumer assets, including asset backed securities and residential mortgages; corporate assets, including CLOs, secured and mid-market loans; and real assets including commercial real estate debt and infrastructure debt.
It draws on AXA IM Alts’ global investment platform to identify attractive investment opportunities and aims to build a globally diverse portfolio of assets. This diversification across regions and asset classes, between corporate risks, private consumer risks and real assets risks also provides different drivers of performance when compared to traditional credit. The team aims to capture illiquidity premia through accessing private market opportunities and exploits relative value across assets to drive performance.
The launch comes as pension schemes in the UK and Europe are increasingly looking to diversify their investment portfolios beyond traditional credit instruments and across public and private markets, in the search for higher returns. The actively managed strategy has been designed to take advantage of each phase of the credit cycle, drawing on AXA IM Alts’ extensive sourcing and credit research capabilities, allowing the strategy to tactically deploy capital at speed.
Christophe Fritsch, Co-Head of Securitized & Structured Assets at AXA IM Alts, commented: “As pension schemes mature, they face a multitude of challenges, from identifying contractual cashflows, generating higher yields in a low return environment, and diversifying beyond traditional credit. As well as offering a potential yield premium versus traditional credit, secured finance provides diversification benefits by investing in the full scope of debt instruments, secured by different types of collateral, in both the public and private markets. We have seen increasing demand from our pension scheme clients for such a strategy in a more flexible format, to account for the different stages of the scheme’s lifecycle they may be at. This latest strategy is in response to that demand, offering our clients exposure to a diversified portfolio of assets across the public and private markets in an open-ended format that provides some liquidity.”
The new strategy is part of a c. €74 billion Private Debt and Alternative Credit platform and builds on AXA IM Alts’ existing Global Secured Assets strategies, which have already achieved €2.2 billion2 in assets under management, across a range of multi asset strategies. The team has proven expertise in managing global secured finance portfolios, navigating the Covid-19 crisis with above target returns, and deploying capital efficiently and ahead of schedule. AXA IM Alts’ first Global Secured Assets Fund (GSA I), which was launched in November 2018, now has a three-year track record, delivering on its fund objectives aiming to provide diversification, yield and cashflows, whilst continuing to identify new investment opportunities of high quality diversified secured assets. GSA I is now closed to new investments.
AXA IM Alts’ structured finance platform has a more than 20-years track record in managing investments across the full spectrum of public and private strategies in alternative assets, with more than 90 investment professionals located in every major market globally3 .
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The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested.
About AXA IM Alts
AXA IM Alts is a global leader in alternative investments with €163 billion of assets under management4 comprising c.€78 billion of primarily private real estate, c.€74 billion of private debt and alternative credit, as well as c.€11 billion in Infrastructure, private equity and hedge funds. We take a 360° approach to real assets (real estate & infrastructure) investing with c. €110 billion of assets under management in direct opportunities, held indirectly through debt and listed equities and via long term private equity investments into operating platforms. ESG is fully integrated into our investment decision making processes with our responsible investment approach anchored by the three key pillars of decarbonisation, resilience and building tomorrow. AXA IM Alts employs over 750 people located in 16 offices around the world and serves the needs of more than 400 clients from Europe, North America, Asia Pacific and Middle East. We are the number one property portfolio and asset manager in Europe5 , and one of the largest worldwide.
About AXA Investment Managers
AXA Investment Managers (AXA IM) is a responsible asset manager, actively investing for the long-term to help its clients, its people and the world to prosper. Our high conviction approach enables us to uncover what we believe to be the best global investment opportunities across alternative and traditional asset classes, managing approximately €866 billion in assets as at the end of June 2021.
AXA IM is a leading investor in green, social and sustainable markets, managing €568 billion of ESG-integrated, sustainable and impact assets as at the end of June 2021. We are committed to reaching net zero greenhouse gas emissions by 2050 across all our assets, and integrating ESG principles into our business, from stock selection to our corporate actions and culture. Our goal is to provide clients with a true value responsible investment solution, while driving meaningful change for society and the environment. AXA IM employs over 2,440 employees around the world, operates out of 27 offices across 20 countries and is part of the AXA Group, a worldwide leader in insurance and asset management.