UK - Axa Investment Managers has launched a second credit equity volatility arbitrage hedge fund - Axa KAPPA Opportunities.
The new fund – which follows the May 2003 launch of Axa KAPPA – exploits arbitrage opportunities from the volatility levels between the debt and equity of the same company. It uses credit default swaps to capture attractive volatility levels on the long and short side.
Like its predecessor fund, the Axa KAPPA Opportunities fund will be able to implement both long and short positions, allowing it to benefit from both rises and falls in the volatility market.
The new fund targets performance of 15-20%, with volatility below 10%.Axa KAPPA Opportunities fund manager Guillaume Boulanger said: “The evolution of the credit derivative market, in terms of size and liquidity, has made this innovative step possible.
“We firmly believe this growth and evolution will allow these types of strategies to mature and develop.”
Axa IM currently manages £40bn in credit with a team of 19 credit research analysts and 28 portfolio managers.
The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) have launched a refreshed ScamSmart campaign to warn savers about unsolicited pension communications.
Ann Harris OBE and Mike Dailly have been appointed non-executive directors at the upcoming single financial guidance body (SFGB).
Pension schemes are "placing too much focus" on a narrow section of the private debt market where competition is driving down "compelling opportunities", according to Willis Towers Watson.
Barnett Waddingham's head of business development Adrian Cooper has left the consultancy to join TPT Retirement Solutions in a newly-created role.