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.
15 January 2020
Regulatory Capital Transactions
The RegCap transactions market has transformed into a full-fledged alternative investment opportunity that is being strategically utilised by issuers and investors alike.
03 December 2019
UK General Election Update: Uncertainty likely to continue to disincentivise investment in 2020
UK General Election enters its final phase with a Conservative majority on the cards, but with no immediate comfort for business
19 November 2019
ESG Research Roundtable
Solène Danière, Fixed Income Portfolio Strategist, discusses some myths around Environmental, Social and Governance (ESG) integration, how fixed income investors can engage with issuers & what li ...