AXA IM FIIS Europe Short Duration High Yield

ISIN LU0658025209

Last NAV 140.1500 EUR as of 12/12/19

Overview

Investment objectives

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.

Risk

Synthetic Risk & Reward Information scale

1 SRRI Value 2 3 4 5 6 7

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?

The capital of the Sub-Fund is not guaranteed. The Sub-Fund is invested in financial markets and uses techniques and instruments which are subject to low levels of variation under normal market conditions but, which may still result in losses.

Additional risks

Credit Risk: Risk that issuers of debt securities held in the Sub-Fund may default on their obligations or have their credit rating downgraded, resulting in a decrease in the Net Asset Value. Liquidity Risk: risk of low liquidity level in certain market conditions that might lead the Sub-Fund to face difficulties valuing, purchasing or selling all/part of its assets and resulting in potential impact on its net asset value. Counterparty Risk: Risk of bankruptcy, insolvency, or payment or delivery failure of any of the Sub-Fund's counterparties, leading to a payment or delivery default. Impact of any techniques such as derivatives: Certain management strategies involve specific risks, such as liquidity risk, credit risk, counterparty risk, legal risk, valuation risk, operational risk and risks related to the underlying assets. The use of such strategies may also involve leverage, which may increase the effect of market movements on the Sub-Fund and may result in significant risk of losses.

Investment horizon

This Sub-Fund may not be suitable for investors who plan to withdraw their contribution within 3 years.

Fund manager comment : 30/11/19

Factors affecting performance As we are leaning toward year-end the mood has been a little better with short-term recession risks having faded. However, markets remain hostage to political developments, especially on global trade. Credit spreads sustained some intra-month volatility albeit more subdued, the global high yield market ended the period tighter by -12bps. Over the month the European region benefitted from its higher quality rating mix, outperforming both US and EM geography. Activity within the primary market (companies issuing new debt) picked up again with corporates looking to issue before year-end, €10.3bn of new supply was recorded in Europe. Looking at rating higher beta single B and CCC buckets outperformed the longer duration BB corporates as the European market was less impacted by idiosyncratic stories over the period. As for regions, the Sterling HY region continued to outperform the Euro HY sub universe. European market top performing sectors were consumer goods and transportation, while the least performing ones were utility and telecommunications. In November, the ICE BofAML European Currency High Yield Index recorded +0.93% total return (EUR hedged), with a +1.2% excess return versus governments. Main changes to the portfolio Over November the focus was very much about managing coupon reinvestments, bond redemptions and maturities through secondary markets. We have been reinvesting across single B and BB rating buckets focusing on healthcare, retail and energy to name a few. Out of the primary market we participated in two of the 5yrs deals, namely Ball (capital goods) and Grifols (healthcare). Current market influences and outlook The combination of current valuations and risks to the global economic outlook suggest that 2020 will be less rewarding to investors than 2019 has been. This is particularly the case for fixed income markets as bond yields and credit spreads are significantly lower than they were at the end of 2018. The key driver of strong returns this year has been monetary policy. Looking forward it is difficult to see the same kind of impact from monetary policy actions given that the Federal Reserve appears to be on hold and the ECB has largely ran out of ammunition. Bond yields might not rise significantly, and credit markets should remain supported by the easy stance of monetary policy, but the strong price action seen in fixed income assets is not likely to be repeated. For the moment, however, credit markets appear to be well supported and will provide investors with some stability.

Performance

Performance chart

Period

1M
3M
6M
1Y
3Y
5Y
8Y
10Y
YTD
Since launch

Start date

End date

Benchmark

Performance indicator Start date End date
- - -

Performance table

End date

Performance table Net performance Performance indicator  Start date End date
1M - - - -
QTD - - - -
3M - - - -
6M - - - -
YTD - - - -
1Y - - - -
2Y - - - -
3Y - - - -
4Y - - - -
5Y - - - -
8Y - - - -
10Y - - - -
Since launch - - - -

Risk table

End date

Risk table Fund volatility Benchmark volatility Tracking error Information ratio Sharpe ratio Beta Alpha
1M - - - - - - -
QTD - - - - - - -
3M - - - - - - -
6M - - - - - - -
YTD - - - - - - -
1Y - - - - - - -
3Y - - - - - - -
5Y - - - - - - -
8Y - - - - - - -
10Y - - - - - - -
Since launch - - - - - - -

Price table

Start date

End date

Price Date Portfolio AUM
- - -

NAV

First NAV date 08/08/11

Administration

Distribution country

Distribution countries
Denmark
Germany
Liechtenstein
Luxembourg
Netherlands
Spain
Switzerland
United Kingdom

Fees

Ongoing Charges 0.58%

Fund facts

Currency EUR
Start date 05/08/11
Asset class HIGH YIELD AND US ACTIVE FIXED
RI fund False
Legal authority Commission de Surveillance du Secteur Financier

Portfolio management

Fund Manager James GLEDHILL
Co-manager Yves BERGER
Investment team MT European & Global High Yield

Structure

Investment area Euro
Legal form FCP

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.

Literature