AXA IM FIIS Europe Short Duration High Yield

ISIN LU0658026199

Last NAV 92.3800 EUR as of 12/11/19

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.

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 : 30/09/19

Factors affecting performance Fixed income returns continued to be positive in September fuelled by a pick-up in high yield supply however as we approached mid-month investors started reflecting on the broader level of uncertainty in the global economy. Credit spreads sustained volatility in this context, the global high yield market ended the period -15bps tighter. Although the emerging market region seemed less affected than the US and Europe, this outperformance was mainly retracting from August’s Argentina strong spread widening. As usual September turned out to be busy for high yield primary supply with €8.4bn priced in Europe. YTD supply amounts to now €46.7bn. Sterling HY outperformed the Euro HY sub universe, being less impacted by the shift in government yields. Looking at ratings higher beta companies (B and CCC buckets) outperformed the longer duration BBs corporates. For the global high yield market top performing sectors were automotive and consumer goods, while the least performing ones were transportation and services. In September, the ICE BofAML European Currency High Yield Index recorded -0.1% total return (EUR hedged), with a +0.37% excess return versus governments. Main changes to the portfolio We deploy cash available through both primary and secondary markets as we observed a pick-up in liquidity over the period. On the former we participated in a range of 5 years deals within telecommunications, real estate and basic industry. While we traded two-ways in the secondary markets and took advantage of the market reopening to rotate positions in healthcare and financial services, exited one transportation name based on fundamentals while added to leisure, services and energy. Current market influences and outlook It is difficult to see a significant improvement in investor sentiment in the short term with uncertainty of Brexit and the US-China trade relationship potentially persisting through year-end. While credit markets continue to perform well, the absence of any positives on the macro front could begin to erode credit fundamentals going forward. The inability of global equity markets to make new highs is something worth watching. A rise in equity volatility would be a bearish signal for credit and could lead to some widening of spreads.

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

Distribution country

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

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