Axa WF Optimal Absolute, which was launched at the end of July, has a target investor base comprising private banks, funds of funds and professional advisers.
The fund aims to generate a positive return every year irrespective of market conditions, by taking long or short positions in a range of asset classes. Positions are made directly via indices, financial securities, shares or bonds, or by using derivatives.
According to its manager, Serge Pizem, the head of optimal investments at Axa IM, the fund invests equally in developed and emerging markets, and focuses on liquid asset classes. By combining macro and bottom-up strategies, it seeks to minimise correlation between its different positions.
“Currently, the portfolio is invested primarily in monetary products because volatility is high and the correlation between major asset classes is unstable,” said Pizem. “The impact of political decisions is high upon markets and so we are currently avoiding committing too much capital in this environment.”
The launch of the fund expands Axa IM’s absolute return offering. Other funds in the range include Axa Optimal Income and Axa WF Optimal Income.
Axa WF Optimal Absolute, which is Ucits III compliant and Luxembourg domiciled, has retail and institutional share classes. Axa IM said it is considering registering the fund in other European countries.