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AXA IM FIIS Europe Short Duration High Yield

ISIN LU0658025464

Last NAV 81.3500 EUR as of 09/04/20

Overview

Investment objectives

The Sub-Fund seeks to achieve 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

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. 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. 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. 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 : 29/02/20

Factors affecting performance The spread of the COVID-19 virus outside of China during the month of February generated a huge amount of uncertainty over the short-term to intermediate economic outlook. Global growth forecasts have been revised down and expectations of additional policy steps have increased. With weak sentiment and a "fly-to-quality" stance from fixed income investors global high yield market credit spreads gapped further by 84bps. The EM and US regions benefitted from the treasuries support whilst Europe ended being slightly more impacted. The high yield new supply activity was in full swing in both regions till the market refocused again on the impact of a pandemic outbreak, we saw $27.9bn of USD-denominated debt added and _6.4bn of new supply in Europe. Sterling HY remained resilient vs the Euro HY sub universe, being somehow less impacted by the risk-off sentiment. Looking at rating better quality corporates outperformed higher beta bonds while the least impacted sectors in the month were capital goods and telecommunications, and the worst performing ones were leisure and automotive. In February, the ICE BofAML European Currency High Yield Index recorded -1.8% total return (EUR hedged), with a -2.1% excess return versus governments. Main changes to the portfolio Activity in the fund remained linked to the current market environment and client flows. On the secondary markets we carried on investing available cash across rating buckets and sectors such as real estate, healthcare or tmt. As for primary market we have been participating in deals such as Banijay (media) and TalkTalk (telecommunications). Current market influences and outlook It is clear from data already available for February and from anecdotal evidence that economic activity has been materially impacted by the spread of the virus. At the time of writing there were still new cases being reported in a number of countries with restrictions on travel and public gatherings being either discussed or implemented. The impact on the virus has already hit the supply-side of the global economy through its impact on the ability of people to go to work and on the shipment of goods and provision of services. Demand is also being affected through reduced travel and tourism and other consumer services. This is impacting on corporate earnings estimates, leading to a widening of credit spreads in line with declines in equity markets. A recovery in economic expectations, higher bond yields and a renewed narrowing of credit spreads will rely on evidence that infection rates have peaked and that the spread of the virus has been contained, together with whatever macro stimulus measures are implemented. We are not yet at that stage. As such, long-term bond yields could remain extremely low while credit spreads may widen further.

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
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Performance table

End date

Performance table Net performance Performance indicator  Start date End date
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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
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NAV

First NAV date 08/08/11

Administration

Distribution country

Distribution countries
Austria
Denmark
Finland
France
Germany
Italy
Liechtenstein
Luxembourg
Netherlands
Norway
Singapore
Spain
Sweden
Switzerland

Fees

Ongoing Charges 0.89%

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.

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