AXA targets Newcits with fund of funds launch

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AXA Investment Managers (AXA IM) has become the latest firm to launch a fund of Newcits funds.

The launch of the new AXA World Fund Multi Alpha fund comes just days after Aberdeen revealed it is also about to enter the Newcits fund of funds space.

The new Luxembourg-domiciled AXA fund will invest in single-strategy Ucits III hedge funds, selected on the basis of their ability to generate alpha and their liquidity.

Core allocations in the portfolio will be to equity long short, global macro and CTA strategies. while strategic allocations will be continuously monitored to ensure diversification and minimise drawdown risk, according to AXA IM.  

Of the launch, Chris Manser, global head of AXA Fund of Hedge Funds said: '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.'

Manser says the firm's hedge fund expertise will be key in identifying managers who will be able to replicate their offshore fund performance in a Ucits III wrapper.

'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.'