Axa IM offers emerging markets small-caps

Emerging markets signAxa Investment Managers (Axa IM) has launched a global emerging markets small-cap strategy, which it says can be used to capture equity market upside.

The strategy targets companies with market capitalisations between $100 million (€89.4 million) and $2.5 billion, and is run by Axa IM’s systematic equity house, Axa Rosenberg.

The offering is the latest move as Axa IM further develops its global emerging markets business. The firm, which had €689 billion of assets under management in total at March 31, recently merged its emerging market debt teams.

Kathleen Houssels, head of research and models for Axa Rosenberg, says small-cap stocks in emerging markets can be an effective way to capture equity market up-side potential.

“Historically, these stocks have been less driven by global sector trends and more by specific market conditions, which has resulted in lower correlation with developed world equities.”

The strategy has a selection universe of about 6,500 companies worldwide.

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