POWERED BY MOMENTUM MEDIA
AXA targets MySuper with 'Smart Beta' strategies
AXA Investment Managers has unveiled a series of 'Smart Beta' credit market strategies that have been designed with MySuper products in mind.
According to a white paper released by AXA IM entitled "Investing in Credit: Smart Beta or Dumb Beta?", cap-weighted strategies have failed investors because they lack diversity and do not 'buy and sell' the market well.
"Had you, for example, invested in the global equity index in 1989 you would have invested 50 per cent of your money in Japan - an investment which would subsequently drag down the return from the other markets in the index," according to the white paper. AXA's Smart Beta strategy, on the other hand, avoids overweighting the most indebted issuers by striving to avoid poorly valued or 'at risk' bonds.
Regular monitoring by the AXA Fixed Income team ensures that diversification and credit worthiness of the portfolio is maintained, according to AXA IM director, Australia and New Zealand, Craig Hurt.
"SmartBeta offers a middle ground for those looking to harvest the return of the market whilst still avoiding the inefficiencies of a purely passive approach.
"It is a strategy that is designed with the aim of protecting portfolios from both systemic and event risk and to deliver a less volatile return," said Hurt.
"We believe that our SmartBeta solutions will enable local investors to achieve both the low costs they are seeking while simultaneously resolving the market-capitalisation issues," he added.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The super fund announced that Gregory has been appointed to its executive leadership team, taking on the fresh role of chief advice officer.
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
