Industry Updates

AXA IM eyes entry into fixed income ETFs

The French asset manager has hit $1bn AUM in a little over six months

Theo Andrew

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AXA Investment Managers will look to enter the European fixed income ETF market before the end of this year, according to its global head of ETF sales Olivier Paquier.

Speaking to ETF Stream, Paquier (pictured), who joined the group from JP Morgan Asset Management in January, said the French asset manager hopes to launch its first bond ETF this year, an area that has been proven to be the asset allocation choice of 2023.

“We live in a fixed income era,” Paquier said. “I believe we will be present by the end of this year with a fixed income ETF.”

Since entering the market last September, the firm has amassed over $1bn assets under management (AUM) across its three equity ETFs.

Despite its ambition to launch a fixed income strategy, Paquier said the growth of the ETF market will not be driven by a single area but by the wrapper’s constant ability to bring innovation to the fund space.

“The fact that the innovation always comes through ETFs is a big key driver,” he said. “It is active, it is thematic, and now it is fixed income ETFs driving the market.”

He added AXA IM has been approached by index providers to launch products but said it was also looking to “keep some room for our clients’ needs”.

“We are listening to what our ETF users want. Whether we can launch it every time, obviously it is not going to be a yes, but that is how we are going to prioritise it,” he said.

Paquier said it will continue to launch ETFs in both the passive and active space but said it hoped to bring “something new” via its active offering.

“We know most of the assets held in ETFs are in the passive space so we also want to be present,” he said. “But to make a difference with clients, we need to make sure we also bring something new, and that new thing is true, fundamental, actively-managed ETFs.

AXA IM entered the European ETF market with the launch of the AXA IM ACT Biodiversity Equity UCITS ETF (ABIU) and the AXA IM ACT Climate Equity UCITS ETF (ACLT), which now house $352m and $377m AUM, respectively.

In November, the form launched its first rule-based passive ETF, the AXA IM Nasdaq 100 UCITS ETF (ANAU). As Europe’s cheapest Nasdaq 100 ETF, ANAU has amassed $417m AUM.

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