AXA IM FIIS Europe Short Duration High Yield

ISIN LU0658025621

Last NAV 104.1100 CHF as of 14/11/19

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. The Unit Class aims at hedging the foreign exchange risk resulting from the divergence between the reference currency of the Sub-Fund and the currency of this Unit Class by using derivatives instruments whilst retaining the exposure to Investment Policy described above.

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 : 31/10/19

Factors affecting performance While markets remained focus on the global economic outlook with various manufacturing data indicators being published through the month, the overall negative sentiment was reversed by month-end helped by positive developments on a US/China trade and Brexit being further extended. Credit spreads sustained some intra-month volatility, but the global high yield market ended the period flat. Over October the emerging market region being less directly affected by current themes outperformed both the US and European regions. With €8.6bn of new supply in Europe the primary market (companies issuing new debt) remained active over the month. Looking at rating higher beta rating buckets underperformed the longer duration BB corporates as the first proved to be more driven by idiosyncratic news. Benefitting from a Brexit deadline extension the Sterling HY region outperformed the Euro HY sub universe. European market top performing sectors were energy and healthcare, while the least performing ones were consumer goods and services. In October, the ICE BofAML European Currency High Yield Index recorded +0.06% total return (EUR hedged), with a +0.54% excess return versus governments. Main changes to the portfolio In line with the asset class’ trend the fund’s activity remained link to client flows over the period, we focused mostly on the secondary market where we raised cash based on fundamentals across financial services and healthcare whilst adding to services, leisure and retail. In the primary market we participated in several shorter dated deals: Demire (real estate), Ziggo (media) and Eircom (telecommunications). Current market influences and outlook Overall yields are likely to remain low given the stance of interest rate policy and balance sheet activity by both the Federal Reserve and the European Central Bank. Fixed income will be dominated by low interest rates as we approach 2020 and the future direction of rates, signalled in yield curve developments, will be very dependent on how the economic shapes up in the next quarter or so. A US election bounce for the economy and a post-election Brexit could steepen curves going into the new year.

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

Fees

Ongoing Charges 0.61%

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