AXA Investment Managers (AXA IM) has launched a global equities and debt investment vehicle to provide exposure to the long-term returns direct real estate.
AXA Investment Managers (AXA IM) has launched a global equities and debt investment vehicle to provide exposure to the long-term returns direct real estate.
AXA WF Global Flexible Property will invest in listed equity and debt instruments issued by global universe of publicly traded real estate companies.
Targeting an allocation of 60% equity to 40% debt, the vehicle is designed to mimic the liability side of a real estate company’s balance sheet therefore providing a return profile similar to that of a direct real estate investment.
AXA said it has the flexibility to change the asset allocation mix of the fund and reduce or increase equity exposure according to the property cycle, with the aim of reducing overall volatility.
'Mixing real estate equity and debt instruments in one liquid strategy is a relatively recent investment opportunity. The disintermediation of banks following the global financial crisis has created a much deeper market for real estate debt,' said Frédéric Tempel, global head of listed real estate at AXA IM and lead manager on the fund.
'Following this approach and investing in the full range of liquid instruments issued by property companies worldwide, we expect to mimic unlevered returns of directly held property and offer investors a more flexible option for investing in property.'
The fund will be diversified across its asset allocation of equity and debt, geographic regions (Americas, Europe and Asia Pacific) and real estate sub-sectors.
