AXA IM FIIS Europe Short Duration High Yield

ISIN LU0658026199

Last NAV 92.0000 EUR as of 17/01/20

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 : 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.

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 0.88%

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: 1,000,000 in the relevant reference currency of the relevant Unit class.

Literature