Asset Management Awards for Excellence 2017 – Best Fund Provider – Real Estate Asset

AXA Investment Managers

Terence Lam, Managing Director, Head of Sales, APAC

Terence Lam
Managing Director,
Head of Sales, APAC

In Asia’s private banking industry, most clients desire their portfolios to have less correlation with markets, an ability to achieve predictable income and inflation protection. Real estate is an asset class that has historically fulfilled such needs and, unsurprisingly, the region’s wealthy have a well-documented penchant for bricks and mortar – Capgemini estimates the class represents 20.5% of Asia ex-Japan HNWIs’ overall.

But in the wake of ongoing tectonic shifts in the spheres of economy and policy, investors are rightfully concerned about concentrated exposure at increasingly granular levels. Investing in direct real estate globally can be capital-intensive, illiquid and timeconsuming. Relying on real estate investment trusts (REITs) could require withstanding significant volatility risk due to leverage.

AXA Investment Managers believes even a mix of the two is insufficient. Backed by a seasoned team and a market leading status as a real estate investor – ranked first in Europe and sixth globally – AXA Investment Managers blends direct and listed real estate with both public and private debt – an approach it fittingly calls a 360-degree view of real assets.

The results have proven to be highly correlated with property performance in liquid terms with significantly lower volatility than REITs. What’s more, the asset class has been historically cyclical and a broader view enhances capabilities to better assess which way the market is swinging and how.

Persistent yield demand in a still low-rate environment, coupled with fixed income risks like commodity price instability or interest rate volatility, is expected to drive real estate assets’ appeal. And be it to help clients diversify existing traditional property exposure or to substitute bonds for superior yield, gatekeepers have selected AXA Investment Managers as the Best Fund Provider – Real Estate Asset for the second consecutive year.