Axa has launched Axa IM Maturity 2022, a five-year fund which primarily invests in high-yield US bonds. The fund is open for subscription until February 28, 2017 and is a sub fund of the Icav Axa IM World Access Vehicle. Axa Investment Managers (Axa IM) acts as the fund manager while the fund, which is available in euro and US dollar, is distributed in Belgium by Axa Bank.
The fixed term of the fund could also appeal to investors who normally invest in structured products or bonds, according to Caroline Boulenger (pictured), head of product management daily banking, savings & investments, Axa Bank Europe. "Because the fund has a fixed maturity date, the classic buy & hold bond investor could also be interested," said Boulenger.
"Diversification is important when you are investing. This product offers a great diversification opportunity in a diversified portfolio. The large number of bonds within the fund contributes to this," said Boulenger.
At the end of the investment period, from February 28, 2022, the fund will invest automatically in money market instruments and cash, and, according to Boulenger, all bonds will be redeemed or sold. "Our partner Axa IM will compose and monitor the portfolio to limit risks of defaults but there is no capital protection on this product."
The fund is a follow up to Axa IM Maturity 2020, a similar fund with a maturity date which collected €225m during its subscription period earlier this year.
'The US high yield market with nearly US$3tr and more than 1,000 high yield companies in a variety of sectors is significantly larger than the European high yield market,' said Pepper Whitbeck, head of US fixed income, Axa IM, in a statement.
'It is almost impossible to estimate the timing of market trends. This fund with its predefined maturity reduces the burden of investors by softening the impact of market and interest rate changes,' said Whitbeck.
Axa Bank has launched 25 structured products worth €522m in Belgium between January 1, 2013 and November 30, 2016. Of these, eight products with combined sales of €228m were linked to funds including Arty, Carmignac Patrimoine, DNCA Eurose, Ethna Aktiv and Pictet Multi Asset Global Opportunities.
Year to date Axa occupies the eight position in the top 10 of the most prolific structured products providers in Belgium, having sold seven products with estimated sales of €104m which translate in a 2% share of the market.
KBC is market leader in Belgium with 41% of the market (€2,161m from 90 products), while BNP Paribas Fortis (€815 from 52 products), Belfius (€724m from 50 products), Deutsche Bank (€368m from 48 products), Crelan (€309m from 17 products) and BPost Bank (€253m from 36 products) are also ahead of Axa. AG Insurance (€43m from eight products) and VDK Spaarbank (€38m from four products) complete the top 10.
Click the link to view the product brochure of Axa IM Maturity 2022 (Dutch/French).
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