Smart solutions for harvesting beta from fixed income and equity markets
An issue that passive investors have faced for many years is how best to capture efficiently the returns - delivering the yields and growth - available from financial markets, at a low cost. The most common approach thus far has been to simply track the relevant market capitalisation-weighted index, despite a number of well-documented shortcomings associated with this approach.
For Corporate Bonds, diversifying using market capitalisation weightings seems a strange way to minimise credit risk, given that it dictates a greater investment in the most indebted companies – ultimately, not the best reward for investors.
For Equities, passively invested market cap weighted strategies fail equity investors by clinging to past winners, assuming that the price of a stock is always a fair reflection of its true value and not offering real diversification across names, sizes and sectors.
With these shortcomings in mind, AXA IM has developed Efficient Investing solutions for long-term investors. These outcome-driven strategies aim to capture market-like returns more efficiently, in a transparent and low cost manner.
The solutions are designed to enable clients to customise their strategies to meet their desired responsible and impact investing requirements - by integrating Environmental, Social and Governance factors or directing the outcome towards the dual objectives of achieving both financial and social returns.
Global Technology strategy - Business conditions troughed in April and has been improving since
During May, global equity markets continued to recover with the MSCI World index climbing 2.8%, whilst the technology sector outperformed with the MSCI World Information Technology Index gaining 6.7%
B&M Strategy Update. How credit trading dynamics adapted to the COVID-19 crisis
The UK has moved past the peak in new daily COVID-19 cases and in the death rate, which has allowed some easing of restrictions, but the UK is not typical in Europe and has seen a relatively protract ...
Impact Investing for Insurers: A win-win alternative?
Adam Cadle at Insurance Asset Management speaks to AXA IM head of impact investing Jonathan Dean about the growth of impact investing and the potential benefits on offer.