AXA IM FIIS Europe Short Duration High Yield

ISIN LU0931210586

Last NAV 104.2300 USD as of 18/09/19

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. The Unit Class aims at hedging the foreign exchange risk resulting from the divergence between the reference currency of the Sub-Fund and the currency of this Unit Class by using derivatives instruments whilst retaining the exposure to Investment Policy described above.

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 : 31/08/19

Factors affecting performance Fixed income returns remained positive in August except for Emerging markets (impacted by Argentina) and the CCC section of US High Yield. Government yields reach new lows in Europe and the US Treasury curve become inverted briefly. There have, and continue to be, key drivers from the macro side with a growth slowdown now evident in many economies. However, the magnitude of government yield moves has arguably exceeded what might be explained by the macro outlook alone, particularly with central banks offering little new in terms of interest rate cuts. Spreads have behaved well, signalling that corporate balance sheets are in good health despite slower growth. Most credit markets have seen positive excess returns relative to strong government bond performance. Indeed, credit markets provide some comfort to investors as the message from credit is that the risks of a full-blown recession are not as great as the movement in rates suggests. European High Yield has been technically quite tight with the normal slow August issuance exacerbated, in particular, by the repayment of around EUR5.5bn of Wind bonds by parent Hutchison Whampoa In August, the ICE BofAML European Currency High Yield Index recorded +0.66% total return (EUR hedged). Main changes to the portfolio We have seen relatively high repayments of bonds which has led us to be quite active in the secondary markets adding to existing positions across the portfolio. A typical summer lack of new issuance has led to us running slightly higher cash than normal in anticipation of renewed market issuance in September. We have also taken the opportunity to reduce three or four higher beta positions into the market strength. Current market influences and outlook While credit spreads have narrowed since the beginning of the year, a further increase in global recession risks would likely reverse this trend, especially if equity market volatility also increased. Hence the determinants of market behaviour will be the economic data – to gauge how trade tensions have already impacted on economic activity, the evolution of discussions between China and the US on trade, and the willingness of the central banks to meet market expectations of easier policy. Our view is that rates will generally be lower and that a recession will be avoided. However, valuations are less attractive in both rates and credit markets and there are considerable uncertainties in the outlook. As a result, fixed income returns may be less appealing than so far in 2019.

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
Finland
France
Italy
Luxembourg
Spain
Sweden
Switzerland

Fees

Ongoing Charges 1.60%

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.

Literature