AXA Investment Managers (AXA IM) said its main loan fund has passed £1 billion in assets under management. The fund is aimed at sophisticated investors looking for fixed income diversification and high income products, and like recent strategies from other managers, it aims to fill the funding gap left by the retrenchment of banks and a subsequent decline in bank finance for mid-market and smaller companies.
AXA IM head of structured finance, Deborah Shire, said: “AXA IM was an early entrant in the loan markets more than 15 years ago and since then has developed a large global franchise. Having invested through several market cycles, we have been able to deliver consistent and sustainable returns for our clients through different environments.”
The fund invests in primary and secondary markets and targets borrowers with a B+ to BB- rating, in sectors such as telecommunications, food and beverage and healthcare, via issues with good coupon payment and low volatility characteristics. Jean Philippe Levilain, Co-head of Loans and Private Debt at AXA IM said: “We are constantly seeking out the ‘hidden gems’ in the vast credit universe for the best interest of our clients; having a large and diversified platform is essential in today’s markets to source these opportunities and manage them through the cycle for our clients.”