AXA IM Alts, an alternative investments firm, is launching the AXA IM Investment Grade ABS Fund, to invest in a broader range of asset-backed securities (ABS) and collateralized loan obligations (CLOs), offering investors access to highly liquid, diversified and high-quality products that aim for attractive risk-adjusted returns.
AXA IM Alts has EUR183 billion ($203.5 billion) in AUM as of June 30, 2024.
The fund will invest in a broad range of consumer-linked assets, corporate credit, real assets and CLOs. AXA noted that fund assets might be denominated in a currency other than its base currency, which might lead to some depreciation of the fund’s assets.
Strategic allocations for institutional investors typically have a greater exposure to corporate credit assets and less exposure to more highly diversified consumer portfolios, according to a statement from Christophe Fritsch, global head of alternative credit for AXA IM Alts. The new fund will give investors greater access to consumer assets, with the attractive spreads and the diversification they provide.
“Through different cycles, ABS has demonstrated resilience and robustness as an asset class,” said Debora Shire, deputy head of AXA IM Alts. “This has led to growing interest and investors’ appetite for ABS solutions.”
