AXA IM picks up Mercer mandate
AXA Investment Managers (AXA IM) has picked up a key mandate, announcing that Mercer's investment business in Australia has allocated $150 million to AXA IM's global investment grade SmartBeta credit strategy.
AXA IM said Mercer's allocation to the SmartBeta credit strategy complemented other managers within their global credit portfolio, enabling Mercer to achieve a cost-efficient and well-diversified global credit exposure without the drawbacks of market capitalisation index tracking strategies.
Commenting on the mandate, AXA IM director of Australia and New Zealand Craig Hurt said local funds were taking notice of intelligent, yet cost-efficient solutions:
"Since bringing our SmartBeta credit and SmartBeta equity strategies to the Australian market we've seen an increasing number of institutional investors look for a more intelligent and pragmatic approach to capture the market return," he said.
The company said its SmartBeta credit strategy took an active approach to defining the investment universe, providing Mercer with a more attractive risk/return profile than that offered by passive index tracking strategies.
From a universe of bond investments determined by a number of rules-based and fundamental filters, AXA IM's diversified portfolio was constructed such that it was not unduly exposed to either systemic or event risk at an issuer, sector or regional level, it said.
AUTHOR
Mike Taylor
Recommended for you
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
