AXA Isle of Man launches new Autobalancing Fund

AXA Isle of Man has worked closely with The Royal Bank of Scotland plc (‘RBS') to develop a new fund - The ‘AXA IOM Autobalancing Fund' (‘The Fund') - which is exclusively available through AXA Isle of Man offshore bonds.

The AXA IOM Autobalancing Fund aims to provide diversified asset exposure to established equity markets, emerging equity markets, worldwide property and commodities by purchasing a bespoke security issued by RBS. The Fund monitors these market sectors daily.

On a monthly basis, the Fund can divert out of individual sectors into a Money Market fund when a downward trend is detected or volatility exceeds normal parameters. On a daily basis, the Fund can divert out of individual sectors into the Money Market fund when volatility exceeds pre-determined normal parameters.

The Fund remains poised to reinvest back into any sector when a positive trend returns or when volatility returns to normal, which helps prevent the fund from becoming "locked in cash".

Key features of the AXA IOM Autobalancing Fund include:

diversified investment - the Fund seeks to capitalise on any growth in a broad range of markets.

responsive to market changes - the Fund utilises a rules-based mechanism to overcome the complex issue of timing investments in to, or out of, each market sector or Money Market fund as conditions change.

rebalancing - the Fund is rebalanced every month to restore an equal weighting (25%) in each market sector as at that point in time. This aims to reduce risk by preventing overexposure to any particular sector.

open-ended for flexibility - the AXA IOM Autobalancing Fund is an open-ended fund with daily dealing to allow clients to switch in and out of the Fund as required.

Mike Foy, Managing Director, AXA Isle of Man, comments: "The AXA IOM Autobalancing Fund is designed to seek positive returns when markets rise and to limit losses when markets are falling or become volatile. We wanted to provide an investment solution that resolves the risky issue of timing investments in to and out of a range of market sectors, with the added benefit of diverting part, or all, of the portfolio into the money market during times of high volatility."