The strategy uses relative value analysis to determine bonds offering the best value and then equally weights them in the portfolio, according to AXA IM.
Mercer said the AXA IM SmartBeta credit strategy complements the other managers in their global credit portfolio and enables Mercer to achieve a “cost-efficient and well diversified global credit exposure”.
AXA IM director of Australia and New Zealand Craig Hurt said since bringing the SmartBeta equity strategies to market the investment manager has seen “an increasing number of institutional investors look for a more intelligent and pragmatic approach to capture the market return”.
“AXA IM has a long and solid track record of managing buy and maintain type strategies and we anticipate further interest in these solutions in the year ahead,” said Mr Hurt.
“Our SmartBeta strategies are gaining significant traction amongst the post-retirement investment options offered by local funds given their focus on effectively harvesting beta while also seeking to minimise losses.”
