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AXA IM FIIS Europe Short Duration High Yield
Last NAV 140.6400 EUR as of 21/01/20
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 : 31/12/19
Factors affecting performance The last few weeks of 2019 saw an improvement in investor sentiment as risks around global trade tensions and a hard Brexit subsided materially. This allowed a strong performance from risk-assets in the final month of the year, the global high yield market subsequently ended the period tighter by -39bps. Over the month the US region benefitted from the strong returns of the lower rated US corporates, outperforming both Europe and EM geographies. Activity within the primary market (companies issuing new debt) reduced somewhat with only €2.3bn of new supply recorded as the market was shutting down over the Christmas period. Although the UK general election cleared some Brexit uncertainty both markets ended the month inline, whilst looking at rating higher beta single B and CCC buckets outperformed the longer duration BB. For the European high yield market top performing sectors were consumer goods and real estate, while the least performing ones were technology and leisure. In December, the ICE BofAML European Currency High Yield Index recorded +1.1% total return (EUR hedged), with a +1.2% excess return versus governments. As for FY 2019 the index returned +11.4% (EUR hedged). Main changes to the portfolio The fund’s activity remained link to client flows over the period, we focused on the secondary market where we have investing selectively within single B and BB rated buckets focusing on healthcare, media and utility based on relative value and fundamentals. No primary market activity to be reported for the strategy over December. 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, should provide investors with some stability and given current spreads also provide positive excess returns through 2020.
Past performance is not a reliable indicator as to future performance.
Performance calculations are net of management fees. Performance are shown as annual performance ( 365 days). In the case where the currency of the investor is different from the Fund’s reference currency the gains are capable of varying considerably due to the fluctuations of the exchange rate.
|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|
|Expertise||European & Global High Yield|
|Range||AXA IM Fixed Income Investments Strategies|
|Custodian||State Street Bank Luxembourg S.C.A|
|Asset manager||AXA Investment Managers UK Limited|
|Depositary||State Street Bank Luxembourg S.C.A|
|Legal asset manager||AXA Funds Management SA (Luxembourg)|
|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.