AXA IM FIIS Europe Short Duration High Yield
Last NAV 132.6100 EUR as of 12/11/19
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.
Synthetic Risk & Reward Information scale
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?
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 indicator||Start date||End date|
|Performance table||Net performance||Performance indicator||Start date||End date|
|Risk table||Fund volatility||Benchmark volatility||Tracking error||Information ratio||Sharpe ratio||Beta||Alpha|
|First NAV date||08/08/11|
|Asset class||HIGH YIELD AND US ACTIVE FIXED|
|Legal authority||Commission de Surveillance du Secteur Financier|
|Fund Manager||James GLEDHILL|
|Investment team||MT European & Global High Yield|
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.