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Buy and Maintain Credit

Buy and Maintain is our flagship fixed income strategy with fully-integrated ESG factor analysis, helping our clients access the investment grade credit markets.

A sustainable and resilient core holding for long-term investors and savers

Our Buy and Maintain Credit strategies actively seek to enhance the returns from the investment grade credit market over the longer term via intelligently constructed and highly diversified portfolios. We aim to maximise value by monitoring and mitigating against costs from turnover and transactions. 

25 years

Our longest running, flagship fixed income strategy with fully-integrated Environmental, Social and Governance (ESG) factor analysis.1

  • [1] AXA IM. AUM and staff data as at 30/06/2020 (latest available)

£347 billion

Assets under management. Our size and scale affords us excellent access to the credit markets and the ability to engage effectively with issuers on behalf of our clients.

€5c 

Saved on every trade. Our centralised dealing desk, with traders specialised by market, instrument and region, adds vital value by minimising transaction cost ‘leakage'.2

  • [2] AXA IM Trading & Securities Finance, unaudited internal analysis as at 31/12/2019 on a representative sample of all Fixed Income trades executed in Europe during 2019 versus the prevailing market price (ie an average of the top six quotes received for each bond).Past cost savings are not a guide to future cost savings.

Why invest in AXA IM's Buy and Maintain Credit strategy?

As market leaders in bond investing, we have partnered with insurance and pension fund clients for over two decades to develop innovative, outcome-oriented investment solutions to meet their evolving financial, regulatory and stakeholder needs.

The full breadth of our credit investing and trading expertise, along with our leading sustainable investing capabilities and state of the art tools, are used to design and construct portfolios that help you achieve your targeted investment outcomes sustainably.    

1.
Diversified, flexible portfolios focused on long-term outcomes

With smart portfolio construction helping to mitigate downside risk over the long term.
Strong multi-level diversification - with issuer, sector and regional diversification. 

2.
An answer to bond market illiquidity

Our low-turnover approach is designed to maximise returns over the long term while mitigating volatility and capital loss.
Deep credit investing capabilities and innovative trading techniques help drive the minimisation of transaction costs.

3.
A smart alternative to passive investing for core portfolios

Designed to avoid the pitfalls of market-weighted index tracking.
We look to capture the returns from the credit market - with a similar credit rating and duration profile - but less downside risk.

4.
Fundamentally driven to build quality in

Strong focus on long-term financial, business and ESG risks, both at investment and on an ongoing basis.
Bottom-up credit selection driven by recommendations of a global team of 43 fundamental credit analysts.

5.
Transparent

Clear portfolio parameters.
Reporting that provides a clear, holistic view on all relevant measures of success.

6.
Long-term credit portfolios designed to meet your needs

Portfolios can be custom built around your specific requirements such as investment principles, risk budgets or regulatory frameworks
Pooled options can offer flexible, cost effective access to fully ESG-integrated credit strategy: Sterling , Euro and Global.

Award-winning cashflow strategies for UK pension schemes

Our Buy and Maintain credit approach is at the core of our cashflow driven investing (CDI) solutions.3
It aims to maximise the security of clients’ future cashflows through:

  • Capital preservation
  • Predictability of cashflow delivery
  • Maximising the premium over gilts
  • [3] Pensions Age Awards 2020. References to league tables and awards are not an indicator of future rankings or awards.
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Award-winning cashflow strategies for UK pension schemes

How integrating ESG can help build resilient credit portfolios

Responsible investment has always been about the long term. Equity investors want to know a company isn’t vulnerable to global shifts around environmental or social issues and fixed income investors, looking to more distant horizons, might need to ensure a business can be part of a resilient strategy for the next 20 years.

We believe that integrating Environmental, Social and Governance analysis into our credit strategies leads to more effective investment solutions that help address global challenges and create sustainable value for our clients.

Lionel Pernias, Head of Buy and Maintain Credit, London discusses why assessing ESG risks and opportunities is important for long-term investors such as pension funds

ESG is at the heart of our Buy and Maintain credit strategies

ESG Analysis

  • Proprietary ESG scoring methodology
  • ESG analysis embedded into our deep fundamental credit research
  • Qualitative analysis framework for Sustainable Bonds

Investment process

  • ESG performance indicators integrated into investment portfolio decision-making tools
  • Strong governance and ESG risk monitoring
  • Transparency through ESG dashboards and reporting, as well as engagement status updates

Award - Sustainable Corporate Bond Manager of the Year

"Demonstrates its belief that quality and resilience are key to building long-term buy and maintain strategies." - Judges' comment on the award to AXA IM4

  • [4] UK Professional Pensions Investment Awards 2020. References to league tables and awards are not an indicator of future rankings or awards.
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Sustainable Corporate Bond Manager of the Year award

 

Risks considerations for this strategy:

  • Market risk and risk of loss of invested capital
  • Risks associated with fixed income securities, including, but not limited to, interest rate risk, credit risk and liquidity risks
  • Risks linked to global investments

Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested.

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    Risk Warning

    The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested.