What are liquid absolute return strategies?

Liquid absolute return strategies aim to provide a positive return on invested capital over a period of time, irrespective of market conditions, as opposed to relative strategies which aim to beat a specific benchmark. To achieve this outcome, these strategies invest in both traditional and more niche investment areas. We consider this strategy to be liquid, as they are created in a unitised form, which can easily be bought and sold.

Our approach to absolute return

With risk management embedded at every step of the investment process, AXA IM Chorus aims to deliver stable, attractive and uncorrelated long-term returns. We aim to achieve this outcome by taking a rigorous, systematic and scientific approach to investing.

At AXA IM Chorus:

  • We bring together a team of more than 30 high-quality professionals* from both the buy and sell side, as well as expertise from research and technology
  • We carefully select and combine different sources of return. These ‘engines’, as we call them, are built in terms of risk, as opposed to their asset class profile
  • We place research and technology at the centre of a continuous drive to improve our systematic investment models
  • We identify patterns in behavioural finance. In particular we focus on recognising and leveraging the opportunities created by cognitive biases and institutional inefficiencies present within the market
  • We exploit new and alternative data sets to inform our investment thinking and provide fresh ideas

*Source: AXA IM Chorus – October 2017

“While liquid absolute return strategies are not new, we see demand for them increasing and believe that our approach, powered by a team of some of the brightest and best from the buy and sell side, as well as research and technology, will offer clients an exciting and differentiated proposition.”
AXA IM Chorus, Managing Director, Pierre-Emmanuel Juillard