Global flexiblity
The fund is managed by Frederic Tempel, global head of listed property and has an asset allocation of 60 per cent equity and 40 per cent debt. It is designed to mimic the liability side of a property company’s balance sheet which enables the fund to seek a return profile similar to that of a direct investment.
The fund is a Luxembourg-domiciled Sicav and has both retail and institutional share classes. It will be diversified across its asset allocation of equity, debt and regions.
The managers are of the view that mixing real estate equity and debt in one liquid strategy is only a relatively recent investment opportunity and the disintermediation of banks following the global crisis has created a much deeper market for real estate debt.
The fund is currently registered in the UK and a11 eurozone countries.
www.axa-im.co.uk
Comment
Real estate investments can be a dream come true due to chances of better returns and lower risks involved.
But not everyone can afford to get on the property ladder.
This fund aims to provide returns similar to a real estate investment, but also aims for lower volatility and risk.
Initiatives have been implemented by Axa IM’s management team in its plan to further its efforts towards listed real estate investments.
With its diversified portfolio, it aims to provide better returns.
The fund manager has the flexibility to change the asset allocation mix and reduce or increase equity exposure according to the property cycle, with the aim of reducing overall volatility.
The popularity of property is the underlying theme of this fund. Investors often find themselves having to choose between illiquid physical real estate and liquid yet often volatile property equities.
This fund aims to bridge the gap between the two to provide its investors with more certainty.
