AXA IM Swiss Fund – Bonds CHF

Active management – added value for investors

Many private investors are not sufficiently diversified and their asset allocation lacks a well-managed Swiss bonds product. In recent years our Portfolio Management team has consistently exceeded the expectations of Swiss institutional clients in terms of capital preservation during the crisis and as regards performance. We are therefore offering a product which provides private investors with the advantages that until now have been the sole preserve of institutional clients.

The AXA IM Swiss Fund – Bonds CHF will be managed using the same investment style that has generated consistent outperformance in our other products for more than three years. The team uses its decades of experience in the Swiss bond market to achieve sustained outperformance. The investments are indexed against the Swiss Bond Index "Total AAA-A", though the fund managers also have access to BBB-rated bonds. The fund's investment objective is to generate high and regular returns while ensuring capital security. The Swiss Bond Index "Total AAA-A" is used as a benchmark.

Our investment style is based on our core convictions:

• The financial markets take time to react to fundamental developments. This produces trends that can be exploited.
• Some investor interests lead to not entirely rational behavior and create price distortions. These can be used to generate performance.
• Illiquid markets in particular have inefficiencies that one can exploit through arbitrage strategies to generate very low-risk outperformance.

 

These convictions have been validated over and over again in the team's many years of experience and have shaped its investment style, which is characterized in particular by the balanced mix of strategies.

For instance, we use proactive duration and yield curve management and over/underweight specific sectors versus the benchmark. To complete the investment profile we select specific securities on the basis of their relative value among bonds with similar characteristics. Interest rate futures on Swiss and German government bonds (no more than 30% of the fund's assets can be held in the latter) can be used for risk management and arbitrage purposes.

Source: AXA Investment Managers Switzerland Ltd.
September 2011

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AXA Immovation Commercial

Tax-optimized and diversified – stable and consistent

"AXA Immovation Commercial enables Swiss institutional investors withtax-exempt status to invest under optimum tax conditions in a broadly diversified Swiss commercial real estate portfolio that aims to producestable, consistent performance."

Andreas Meier, Fund Manager

A promising investment strategy

AXA Immovation Commercial investsin Swiss commercial real estate. Criteria such as security, earnings andliquidity are key to ensuring the best possible returns for the chosenrisk profile. The fund invests mainly in office buildings. Theportfolio also includes retail/commercial space, hotels, educationalfacilities and other property used for commercial purposes. Factors such as tenant structure, quality and credit rating as well as the termof the rental agreements are key to ensuring stable returns and a lowprobability of default. At the same time the fund aims to achieve appropriate risk diversification in relation to the age, building fabric, location and size of the properties. The fund portfolio has a high proportion of new, contemporary properties that are generally expected to be suitable for use by third parties. Investments are made throughout Switzerland with a focus on the German-speaking economiccenters and their catchment areas.

 

Advantages at a glance

• At fund level no taxes apply on capital gains or profits
• Units are sold and redeemed on the basis of the net asset value.
• No fluctuation in unit values as a result of supply and demand.The fundis equivalent to a broadly diversified substitute for directinvestments.
• The fund is managed by an experienced team of specialists pursuing an active "buy and manage" strategy
• Future investments in the form of non-cash contributions are possible.