AXA IM Europe Short Duration High Yield
Synthetic Risk & Reward Information scale
Fund manager comment : 31/10/19
Factors affecting performance While markets remained focus on the global economic outlook with various manufacturing data indicators being published through the month, the overall negative sentiment was reversed by month-end helped by positive developments on a US/China trade and Brexit being further extended. Credit spreads sustained some intra-month volatility, but the global high yield market ended the period flat. Over October the emerging market region being less directly affected by current themes outperformed both the US and European regions. With €8.6bn of new supply in Europe the primary market (companies issuing new debt) remained active over the month. Looking at rating higher beta rating buckets underperformed the longer duration BB corporates as the first proved to be more driven by idiosyncratic news. Benefitting from a Brexit deadline extension the Sterling HY region outperformed the Euro HY sub universe. European market top performing sectors were energy and healthcare, while the least performing ones were consumer goods and services. In October, the ICE BofAML European Currency High Yield Index recorded +0.06% total return (EUR hedged), with a +0.54% excess return versus governments. Main changes to the portfolio In line with the asset class’ trend the fund’s activity remained link to client flows over the period, we focused mostly on the secondary market where we raised cash based on fundamentals across financial services and healthcare whilst adding to services, leisure and retail. In the primary market we participated in several shorter dated deals: Demire (real estate), Ziggo (media) and Eircom (telecommunications). Current market influences and outlook Overall yields are likely to remain low given the stance of interest rate policy and balance sheet activity by both the Federal Reserve and the European Central Bank. Fixed income will be dominated by low interest rates as we approach 2020 and the future direction of rates, signalled in yield curve developments, will be very dependent on how the economic shapes up in the next quarter or so. A US election bounce for the economy and a post-election Brexit could steepen curves going into the new year.
Past performance is not a reliable indicator as to future performance.
Performance calculations are net of management fees. Performance are shown as annual performance ( 365 days). In the case where the currency of the investor is different from the Fund’s reference currency the gains are capable of varying considerably due to the fluctuations of the exchange rate.
|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||05/10/15|
|Asset class||HIGH YIELD AND US ACTIVE FIXED|
|Range||French Fund AXA Network|
|Custodian||BNP PARIBAS SECURITIES SERVICES|
|Asset manager||AXA Investment Managers UK Limited|
|Legal asset manager||AXA INVESTMENT MANAGERS PARIS S.A.|
|Fund Manager||Yves BERGER|
|Investment team||MT European & Global High Yield|