Global Secured Finance

The UK’s long-term investors are turning to diversified secured finance solutions to generate much-needed yield and predictable cash flows.

5 reasons to consider investing in secured assets

  1. Higher expected risk-adjusted yield than a mainstream investment grade credit allocation
  2. An additional tool to help generate stable and predictable cash flows
  3. Diversification within a fixed income portfolio and a broader pool of growth-seeking assets
  4. Risk mitigation in a rising rate environment through a portfolio’s floating rate cash flows
  5. Lower mark-to-market volatility (in private assets) enabling long-term strategic allocations

Our solutions for institutional investors

For investors focused on meeting obligations such as pension payments or insurance liabilities, accessing the size and diversity of the secured finance asset classes offers the potential to cover many investment needs not sufficiently covered by traditional bonds.

Integrating the cash flow and yield generating characteristics of secured assets into portfolios can present real challenges, even for the most sophisticated investors. Working with clients and advisors we build compelling pooled and customised solutions with targeted outcomes, and help you navigate the complexities of implementation.
 

Global Secured Finance

For UK investors, Global Secured Finance is one such strategy. At its core it is a sterling cash strategy designed to provide quality, predictable cash flows with diversification and risk mitigation benefits by:

  • Providing access to the full spectrum of the secured finance universe through both liquid and private strategies
  • Extracting extra yields through illiquidity and complexity premia through diversified exposure across asset types
  • Actively allocating across regions, asset classes and sectors with dynamic rebalancing

The main risks associated with structured securities include valuation, liquidity, concentration and credit risks along with general economic and market conditions. Investments involve risks, including loss of capital.

 

Risk considerations

General risk factors of investing in a global portfolio of secured assets debt include currency risk, credit risk and liquidity risk. Investment in secured assets should normally be on a long-term buy and hold basis.

Other risk considerations for long-term investors include but are not limited to:

  • General economic and market conditions
  • Market risk
  • Performance risk
  • Model risk
  • Concentration risk

The value of investments may fall as well as rise and you may not get back the full amount invested.

Secured Finance Capabilities*

  • £110bn AuM

    of Structured Finance and Real Assets

  • One of Europe’s

    largest managers of alternative credit

  • 20-year

    track record of investing across the full spectrum of liquid and illiquid strategies

*Source: AXA IM, as at March 2019. Past performance is not a guide to future performance.

This page is for informational purposes only and does not constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services and should not be considered as a solicitation or as investment, legal or tax advice. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested. The strategies discussed herein may not be available in all jurisdictions and/or to certain types of investors.