AXA IM FIIS Europe Short Duration High Yield
Last NAV 139.4300 EUR as of 13/09/19
The Sub-Fund seeks to achieve high attractive income and secondarily capital growth by investing primarily in high yield debt securities denominated in a European currency over a medium-term period.
Synthetic Risk & Reward Information scale
The risk category is calculated using historical performance data and may not be a reliable indicator of the Sub-Fund's future risk profile. The risk category shown is not guaranteed and may shift over time. The lowest category does not mean risk free.
Why is this Fund in this category?
Fund manager comment : 31/08/19
Factors affecting performance Fixed income returns remained positive in August except for Emerging markets (impacted by Argentina) and the CCC section of US High Yield. Government yields reach new lows in Europe and the US Treasury curve become inverted briefly. There have, and continue to be, key drivers from the macro side with a growth slowdown now evident in many economies. However, the magnitude of government yield moves has arguably exceeded what might be explained by the macro outlook alone, particularly with central banks offering little new in terms of interest rate cuts. Spreads have behaved well, signalling that corporate balance sheets are in good health despite slower growth. Most credit markets have seen positive excess returns relative to strong government bond performance. Indeed, credit markets provide some comfort to investors as the message from credit is that the risks of a full-blown recession are not as great as the movement in rates suggests. European High Yield has been technically quite tight with the normal slow August issuance exacerbated, in particular, by the repayment of around EUR5.5bn of Wind bonds by parent Hutchison Whampoa In August, the ICE BofAML European Currency High Yield Index recorded +0.66% total return (EUR hedged). Main changes to the portfolio We have seen relatively high repayments of bonds which has led us to be quite active in the secondary markets adding to existing positions across the portfolio. A typical summer lack of new issuance has led to us running slightly higher cash than normal in anticipation of renewed market issuance in September. We have also taken the opportunity to reduce three or four higher beta positions into the market strength. Current market influences and outlook While credit spreads have narrowed since the beginning of the year, a further increase in global recession risks would likely reverse this trend, especially if equity market volatility also increased. Hence the determinants of market behaviour will be the economic data – to gauge how trade tensions have already impacted on economic activity, the evolution of discussions between China and the US on trade, and the willingness of the central banks to meet market expectations of easier policy. Our view is that rates will generally be lower and that a recession will be avoided. However, valuations are less attractive in both rates and credit markets and there are considerable uncertainties in the outlook. As a result, fixed income returns may be less appealing than so far in 2019.
|Performance indicator||Start date||End date|
|Performance table||Net performance||Performance indicator||Start date||End date|
|Risk table||Fund volatility||Benchmark volatility||Tracking error||Information ratio||Sharpe ratio||Beta||Alpha|
|First NAV date||08/08/11|
|Asset class||HIGH YIELD AND US ACTIVE FIXED|
|Legal authority||Commission de Surveillance du Secteur Financier|
|Fund Manager||James GLEDHILL|
|Investment team||MT European & Global High Yield|
Subscription and redemption
The subscription, conversion or redemption orders must be received by the Registrar and Transfer Agent on any Valuation Day no later than 10 a.m. Luxembourg time. Orders will be processed at the Net Asset Value applicable to such Valuation Day. The investor's attention is drawn to the existence of potential additional processing time due to the possible involvement of intermediaries such as Financial Advisers or distributors. The Net Asset Value of this Sub-Fund is calculated on a daily basis. Minimum initial investment: 30,000,000 in the relevant reference currency of the relevant Unit class.