AXA IM has launched the UCITS III-compliant AXA WF Multi Alpha Fund, which provides diversified access to several such single-strategy Newcits funds. AXA IM selects the underlying funds on the basis of their ability to generate alpha and the liquidity of the strategy, and investors benefit from the operational due diligence carried out at a fund of fund level by AXA IM.
The fund’s strategic allocations are continuously monitored to ensure diversification and minimise drawdown risk whilst maximising return, with core allocations to Equity Long Short, Global Macro and CTAs strategies. The fund will focus on investing in strategies that can efficiently operate within the UCITS III framework without excessive alteration which can diminish returns.
The AXA WF Multi Alpha Fund aims to provide positive absolute returns over the economic cycle. It is a UCITS III-compliant SICAV and it offers weekly liquidity. It is the latest addition to AXA IM’s range of co-mingled funds and portfolios, which currently hold over EUR4 billion in assets under management.
Chris Manser (pictured), Global Head of AXA Fund of Hedge Funds, AXA Investment Managers says: “It can be challenging for individual investors to access hedge fund talent and capture consistent absolute returns. This space consists of a wide variety of strategies that are diverse and cyclical in nature, requiring investors to continuously monitor their exposures.
“We launched AXA WF Multi Alpha to offer investors access to the growing Newcits market with the benefits of built-in diversification, the active management of allocations and continuous portfolio monitoring. The UCITS III wrapper provides a useful risk management framework but does not replace the need for judicious manager selection, operational due diligence and thorough risk management, all elements that our fund of fund structure can provide.
“Moreover, not every absolute return strategy is viable within a UCITS III structure. The depth of experience within our team means that we can identify and access managers that have a proven track record with traditional offshore funds and can demonstrate their ability to maintain similar sources of alpha under a UCITS structure.”
The AXA WF Multi Alpha Fund is Luxembourg regulated and is not currently registered for sale in any other jurisdictions including the UK.