Axa Investment Managers, a Hong Kong fund management subsidiary of Axa Holdings, will launch a fund later this year that will use over-the-counter and listed equity derivatives. "The launch of our absolute return fund will require the use of derivatives," said Barbara Shaw, head of Asian equities and balanced funds. She declined to reveal specific examples of the type of derivatives or strategies it will use. Axa, which has USD4.5 billion in assets, is talking with a number of investment banks in Hong Kong.
Andrew Alexander, managing director, alternative investments Asia-Pacific at Axa in Hong Kong, said this is the first time a major house in the region has delved into alternative investments. He added that the fund, focused on Asian equity, would target investors globally. Alexander also mentioned that derivatives would be used for both hedging and to take positions, but declined to elaborate on the strategy. Alexander declined to comment on the target size of the fund.