Buy and Maintain Credit
Designed as robust, core credit portfolios
Our Buy and Maintain Credit strategies aim to enhance the returns from the investment grade credit market over the longer term via intelligently constructed, highly diversified portfolios, while rigorously monitoring and mitigating against value leakage resulting from credit and turnover/transaction costs.
Key features include:
- A long-term, low turnover, ‘buy and maintain' approach to credit investing
- Focused on maximising yield over the long term through ‘smart selecting' the best issuers and issues while mitigating volatility and capital loss
- Well diversified, high quality portfolio: not market capitalisation weighted to avoid the pitfalls of index tracking
- Strong focus on long-term financial, business and Environmental, Social & Governance (ESG) risks, both at time of investment and on an ongoing basis
- A conservative approach that helps ensure low volatility relative to the standard corporate bond universe
- Low cost: a relentless focus on minimising fees/transaction costs, and maximising returns for investors.
Why invest in AXA IM's Buy & Maintain Credit strategy?
25 years' experience as a successful ‘buy and maintain' investor in the fixed income space
Size and scale: Over 100 investment professionals and £327 billion in fixed income assets under management, affords us excellent access to the markets on behalf of our clients*
Substantial global credit research resources: 65+ dedicated Fundamental Credit Analysts and Portfolio Manager Analysts based in every major region (Europe, UK, the Americas and Asia)
World class dealing capabilities: a centralised dealing desk, with traders specialised by market, instrument and region, adds vital value by minimising transaction cost ‘leakage'
Solutions designed to meet client needs: Segregated mandates can be tailored to client-specific needs, and three pooled vehicles are available for cost efficient access to the credit markets (Euro – Sterling – Global)
Risks associated with this strategy
Market risk and risk of loss of invested capital
Risks associated with fixed income securities, including, but not limited to, interest rate risk, credit risk and liquidity risks
Risks linked to global investments
Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested.
*Staff data as at 31 March 2020. AuM data as at 31 December 2019.
COVID-19: How the market reaction changed the Investment Grade credit landscape for UK insurers
The investment-grade credit market has been supported by central bank intervention during this crisis
COVID-19: Greening the recovery
The economic shutdown due to the coronavirus pandemic has led to a steep fall in greenhouse gas emissions around the world. Estimates suggest it has fallen by a quarter.
Coronavirus throws down a challenge for credit analysis
AXA IM’s credit analysis model has adapted quickly to incorporate new inputs as the COVID-19 crisis heightens sensitivity to regulatory and fiscal conditions.
Buy & Maintain Credit Update No3: Bumpy credit markets offer value for long-term cashflow portfolios
The COVID-19 crisis is focusing minds on the fallout in corporate credit markets. Monetary and fiscal policies remain highly supportive across regions, pushing spreads tighter since the peak of the c ...
Buy & Maintain Credit Market Update
Corporate credit has weathered an initial shock thanks in large part to decisive intervention from central banks.