Funds that resist benchmarks

benchmarkingTwo fund managers have launched funds that intend to shrug off benchmark influence when investing in bonds or global and emerging market equities.

In two unrelated launches, Axa Investment Managers announced a strategic bonds fund today, while two funds from Eaton Vance that capture volatility in global and emerging markets were recently introduced.

Axa IM has launched the Axa WF Global Strategic Bonds Fund. Managed by Nick Hayes, the fund will target “the best alpha-generating opportunities available”, throughout the macroeconomic cycle, leveraging the best ideas from across AXA’s fixed income team and positioned in reference to where the fund manager sees value rather than in reference to benchmarks.

Actively managing duration exposure, which is central to the overall performance, will minimise interest rate risk, the firm said.

Eaton Vance Management (International) recently announced the launch of two funds to be managed by Parametric Portfolio Associates, a majority-owned subsidiary of the firm. One fund targets emerging markets and the other targets global equities.

The rules-based investment process seeks to add excess returns through volatility capture and a systematic rebalancing process.

Parametric believes that traditional market-capitalisation-weighted indices expose investors to unwanted concentration risks.  Portfolios are constructed to be more diverse and less volatile relative to their benchmarks.

Eaton Vance International (Ireland) Parametric Emerging Markets Core Fund primarily invests in common stocks of companies which are domiciled in or derive most of their revenues from emerging market countries.

Eaton Vance International (Ireland) Parametric Global Equity Fund invests in both developed and emerging market countries.

©2012 funds europe