AXA WF Global Income Generation

ISIN LU0960401486

Last NAV 108.2900 EUR as of 12/11/19

Overview

Investment objectives

The Sub-Fund is a multi asset class portfolio, seeking to provide regular income and to achieve medium term capital growth through dynamic and flexible allocation across a wide array of asset classes globally.

Risk

Synthetic Risk & Reward Information scale

1 2 3 SRRI Value 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 some levels of variation, which may result in gains or 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. Geopolitical Risk: investments in securities issued or listed in different countries may imply the application of different standards and regulations. Investments may be affected by movements of foreign exchange rates, changes in laws or restrictions applicable to such investments, changes in exchange control regulations or price volatility.

Investment horizon

This Sub-Fund may not be suitable for investors who plan to withdraw their contribution within 5 years.

Main documents

KIID EN 13/11/2019

KIID FR 04/11/2019

Prospectus EN 07/10/2019

Prospectus FR 24/10/2019

Fund manager comment : 30/09/19

Another busy month. An impeachment procedure was initiated against Donald Trump who is again accused of political interference. In terms of macro data the numbers continue to be soft. The ISM Manufacturing PMI continues to slide whilst in the Eurozone, Germany is weak and Italy struggles. On the monetary policy side both the Federal Reserve and the ECB loosened policy further. In the US, the Democratic party finally decided to proceed with an impeachment inquiry against President Trump for use of Government means for personal benefit. Given that an impeachment has never actually arrived (President Nixon resigned beforehand, and President Clinton was not indicted), one could have doubts as to the actual impact on the current President and given that the process can be long. However, it is clearly a distraction and the timing unfortunate given the elections in November 2020. Short term the ISM Manufacturing PMI continues to fall (47.8 vs 49.1 in August) whilst the new export order component hit the lowest point since August 2008. On the consumer side spending remains buoyant but consumer confidence is dipping which suggests some risk medium term. The Federal Reserve cut rates again by 0.25% bringing the range to 1.75-2%. We forecast another cut of 25bps in December followed by a pause in 2020 unless the recent tension in the short-term liquidity market forces the Fed to announce new measures concerning the reduction of their Balance sheet. In the Eurozone, data remains soft. The European commission confidence survey is stuck at a low level whilst the composite PMI dropped to 50.4, the lowest level since June 2013. German data continues to be worrying and so far, the Government is against any large scale fiscal stimulus. France is doing relatively better and business confidence is slightly up. The ECB cut the deposit rate by -0.10bp to -0.5% whilst also announcing a tiering mechanism designed at helping the banks offset negative rates on part of their reserves. Draghi also announced a new open-ended QE programme worth 20 Billion Euros per month. The ECB also indicated that rates would stay low until at least mid-2020 and that inflation would have to reach 2% before rates will rise. In Italy, the Democratic Party and the 5 stars movement managed to form a government led by former Prime Minister G.Conte. However, this unlikely coalition is fragile given the dissention within the Democratic party. The Spanish go back to the polls on November 10th given that they have been unable to form a Government. In the UK, Brexit dominates the headlines. The Supreme Court dealt a blow to PM Johnson ruling his suspension of Parliament unlawful. Johnson wants to exit the EU on October 31st but a solution to the Northern Ireland backstop remains the main blocking point. In Japan, VAT will rise from 8% to 10% on October 1st. The aim being to reduce public debt which remains sky high at 226% on GBP partly due to the cost of the aging population. The BOJ kept policy stable at their last meeting in September. In China, the regime celebrated 70 years of existence. In his speech President Xi Jinping said that nothing would stop either the people or the country from moving forward, a seeming allusion to the manifestations in Hong Kong and the trade war with the United States. The latest macro data is slightly better, but it is difficult to differentiate between front loading ahead of new tariffs or the Government spending announced a couple of months ago. Equity Markets had a decent month reassured by the accommodative stance from Central Banks despite the softer macro data. In the United States, the S&P500 index rose by +1.87% in USD (+2.67% Euros). In Europe, the Eurostoxx 50 rose by +4.29% with relatively homogenous performances across the different markets: the German DAX rose by +4.09%, CAC 40 by +3.74%, the Spanish IBEX by +4.91% whilst the Italian MIB rose by +4.02%. In the United Kingdom, the FTSE 100 rose by +2.92%. Asian markets recovered from their awful month of August; Japan’s Topix index jumped 6% in Yen. Chinese mainland equity markets were quieter with the Shanghai Composite Index gaining 0.77% in CNY but +1.67% in Euros. Hong Kong's Hang Seng recovered some of the recent losses at +1.87% in HKD and +2.7% in Euros. Emerging markets (MSCI EM Total Return Index) rose by +2.94% in Euros. Bond markets were quieter and generally sold off a little compared to the lows of August. US 10-year rates bounced off the low of 1.45% to a high of 1.89% before sliding back to 1.61%. German 10 year Bund yields moved up from the low of -0.7% to end the month at -0.53%. Same direction for French 10-year OAT yields which ended at -0.26%. Italian 10-year BTP yields traded in a narrow range but ended the month at 0.8%. In credit market, spreads were close to stable in Europe and the US investment Grade. Global High Yield gained +0.50% in US$. With regards to currency markets, the US dollar was close to stable appreciating against the euro by +0.76% whilst the Yen depreciated by -0.92% but Sterling appreciated by +1.86%. The portfolio risk over the month was marginally reduced which reflects our appreciation of the deteriorating macro outlook in developed markets whereby we are keenly aware of the potential spill-over from manufacturing weakness into the service sectors which have as-yet proved relatively resilient. As a result, we expect Central Bank policy to remain in deeply accommodating territory for an extended period to come. The fund transferred some cash assets to the income equity allocation, which is more defensive than the broader market, and sold index futures to maintain the defensive positioning overall. Elsewhere the strategy re-engaged put spread options (strikes 3350/3100) on the Eurostoxx 50 index with a maturity December 2019 with the execution on the trade made when the underlying index broke above the 3500 level (the 3 month range being 3250 – 3590). Finally some increased equity exposure (option delta) from the long call positions (in the money) was rebalanced with the underlying Eurostoxx 50 market at 3500 through the sale of index futures. The fund currently is positioned with an 79% allocation to income generating assets and 16% to long term growth strategies.

Performance

Performance chart

Period

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

Start date

End date

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.

Benchmark

Performance indicator Start date End date
- - -

Performance table

End date

Performance table Net performance Performance indicator  Start date End date
- - - - -
1M - - - -
3M - - - -
6M - - - -
YTD - - - -
1Y - - - -
3Y - - - -
5Y - - - -
10Y - - - -
Since launch - - - -
1y - - - -
3y - - - -
5y - - - -
10y - - - -
Since launch - - - -
Y-1 - - - -
Y-3 - - - -
Y-5 - - - -

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 28/10/13

Administration

Distribution country

Distribution countries
Austria
Belgium
Denmark
Finland
France
Germany
Italy
Luxembourg
Netherlands
Norway
Spain
Sweden
Switzerland
United Kingdom

Fees

Ongoing Charges 0.86%
Management fees 0.60%

Fund facts

Currency EUR
Start date 28/10/13
Asset class MULTI-ASSETS
Expertise Total Return & Allocation
Range AXA World Funds
Legal country Luxembourg
Custodian State Street Bank Luxembourg S.C.A
Asset manager AXA INVESTMENT MANAGERS PARIS S.A.
Depositary State Street Bank Luxembourg S.C.A
Legal asset manager AXA Funds Management SA (Luxembourg)

Portfolio management

Fund Manager Andrew ETHERINGTON
Co-manager Goran JEVTIC
Investment team MT Asset Allocation

Structure

Investment area Global
Legal form SICAV

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 3 p.m. Luxembourg time. Orders will be processed at the Net Asset Value applicable to the following 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.

Literature