AXA Investment Managers – Real Assets has €100bn in assets under management, including €69.2bn in direct property and infrastructure and €26.3bn in real asset finance as of end of December 2019.(1)
We offer a 360° approach to investing in real assets, which comprises opportunities in equity or debt, across different geographies and sectors, as well as via private or listed instruments. We are a global leader in real assets investment, the number one property portfolio and asset manager in Europe(2), and one of the largest worldwide.
Our teams have been managing funds and mandates for over 30 years and comprise over 600 people in 14 offices that operate in over 20 countries around the world, which provide us with in-depth knowledge of countries, cities and sectors.
1 Source: AXA IM – Real Assets unaudited data
2 Source: INREV Fund Manager Survey – May 2019 in terms of assets under management
Industrial: Despite global trade tensions, logistics has performed well. The structural shift towards omni-channel retail and supply chain optimisation (upgrade and consolidation, technological advancement and infrastructure improvements), has supported, and should continue to support, the sector. Above trend rental value growth, resulting from occupiers’ focus on new, efficient space, is expected to slow as affordability becomes a concern. While purpose-built space accounts for most of the supply, speculative development is rising. Furthermore, risks of vacancy at lease-end are expected to increase, leading to obsolescence and higher vacancy in secondary space.
Office: Despite the macroeconomic backdrop, office market fundamentals have been healthy, with record low vacancy in core gateway markets leading to strong rental growth. Rising new supply in these markets is expected to lead to increased vacancy and slowing, but still positive, rental growth over the short term. Conversely, Australian resource markets and provincial Japanese cities are expected to see low levels of supply, driving rental outperformance. The softening stance of central bank policy has reduced the likelihood of short- term yield rises, and spreads to bonds should continue to provide an attractive relative return.
Retail: Population growth across the region and rising wealth per capita in China and ASEAN countries are supporting continued retail sales growth. However, the structural shift toward e-commerce is diverting sales away from traditional retail formats, limiting retailer demand. In addition, increasing occupancy costs and the burden of adapting to an omni-channel strategy are limiting occupiers’ ability to pay higher rents, holding back rental value growth. Prime CBD retail yields have reached new lows across most markets and, with investor interest in retail waning in favour of logistics, prime yields could come under upward pressure.
Investment principles & strategy
AXA IM – Real Assets’ core business is real estate portfolio development and asset management. It aims to provide expert global real estate investment solutions throughout market cycles, supporting every client’s unique strategy.
AXA IM – Real Assets launches and actively manages or advises real estate portfolios, seeking wide-ranging opportunities through a variety of investment strategies along the risk spectrum: from core to opportunistic, countryspecific to geographically-diversified, sector-specific to multi-sector. Its 360-degree multidisciplinary real estate approach allows it to combine different management styles and expertises, to provide clients with individual investment solutions, delivering targeted returns commensurate with specific investor risk profiles and objectives.
Strategic corporate development
AXA IM – Real Assets’ strategic objective is to become a global player, answering clients’ needs with focus on its core business.
In a challenging environment for the industry as a whole, the company continues to pursue both its medium and long-term development plans and sees active long-term real estate investment management as its value-added area of growth. It focuses its strategic development initiatives on the following key areas:
- Strengthening its relationship with its clients;
- Growing its geographic presence;
- Pursuing selective product line expansion and innovation to meet clients’ needs;
- Reinforcing its governance, operational excellence and risk management framework.
Restrictions on use
The information, answers, statements and analysis (together the “Material) provided herein by AXA Investment Managers – Real Assets (“AXA IM – Real Assets”) are provided in good faith for the sole use of the company to whom it is addressed and at its sole request. The information contained herein is to be treated as confidential. It is not for use by retail customers under any circumstances. This Material does not constitute an offer or solicitation, nor is it the basis for any contract for the purchase or sale of any investment, security or product. AXA IM – Real Assets disclaims any and all liability relating to a decision based on or for reliance on this Material. Analysis and conclusions express the views of AXA IM – Real Assets and may be subject to change without notice. All information, analysis and conclusions herein present AXA IM – Real Assets’ current knowledge and market estimation at the time of its production. Nevertheless it can come to unintended erroneous statements or presentations and the information may change at any time without previous announcements and/or notices to the recipient of this Material. Thus, a liability or guarantee for the up-to-datedness, correctness and completeness of the allocated information, estimation and opinion cannot be assumed. Where past performance, past experience and track record information is provided, this is not necessarily representative of future results: performance is not constant over time and the value of investments may fall as well as rise. No representation is made that any results or other figures indicated in this document will be achieved and that investments will achieve comparable results that targeted returns. Due to simplification, this Material is partial and thus the information can be subjective. The information set forth herein does not purport to be complete, and is subject to change without notice.
This document has been prepared and issued by AXA Real Estate Investment Managers, Marketing and Communication Team, Tour Majunga - La Défense 9, 6 place de la Pyramide, 92908 Paris La Defense Cedex.
The information and data used in this presentation has been sourced from a number of recognised industry providers. We believe it to be accurate and have taken reasonable care to confirm this but cannot offer a guarantee that this is the case. Details of these sources are available on request. © 2018 AXA Real Estate Investment Managers and its Affiliated Companies. All rights reserved.