AXA WF Global High Yield Bonds
AXA World Funds Global High Yield Bonds
Monetary easing policies put in place around the world as a response to the pandemic mean that the low interest rate environment that has hallenged income seekers over the past decade looks set to persist for some time yet. Global high yield bonds could provide a solution for yield-starved investors.
AXA WF Global High Yield Bonds aims to achieve a high level of income by investing in a diversified portfolio of fixed income securities, primarily focusing on US and European high yield bonds.
Who is it for?
- Looking for attractive regular income
- Focused on reducing interest rate risk
- Seeking portfolio diversification with a low correlation to other asset classes
Why invest in AXA WF Global High Yield Bonds?
Focus on consistent
We believe that our strategy’s focus on compounding income is well suited to an asset class where high levels of carry are available, and volatility is generally lower than areas such as equities. This focus is income achieved through fundamental credit analysis to identify names that we are comfortable holding for the long-term.
Access the global high yield market with an experienced, knowledgeable team
Our dedicated team of US and European high yield portfolio managers and credit analysts are specialised in the asset class, and have experience working through multiple economic and credit cycles.
An active strategy that seeks to minimise default risk in turbulent markets
The Fund has a strong track record of avoiding defaults relative to the broad market, clear evidence of our ability to identify and avoid names likely to experience a deterioration in credit quality. Most notably, during the financial crisis of 2008/2009, the Fund had just four defaults compared with 259 across the global high yield market.1
Key risks — AXA WF Global High Yield Bonds
Credit Risk: Risk that issuers of debt securities held in the 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 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 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 Fund and may result in significant risk of losses.
Geopolitical Risk: Investments in securities issued or listed in different countries may imply the application of different standards
and regulations (accounting, auditing and financial reporting standards, clearance and settlement procedures, taxes on
dividends…). Investments may be affected by movements of foreign exchange rates, changes in laws or restrictions applicable to
such investments, changes in exchange control regulations or price volatility.
Risk linked to high yield debt securities: Some of the high yield securities held in the portfolio may involve increased credit and
market risk; such securities are subject to the risk of an issuer’s inability to meet principal and interest payments on its obligations
(credit risk) and may also be subject to price volatility due to such factors as interest rate movements, market perception of the
creditworthiness of the issuer and general market liquidity.
issuers Global high yield bonds invested in a diversified portfolio (2)
Total assets under management in high yield fixed income strategies globally (3)
Experience managing high yield fixed income assets (2)
(1) AXA IM / ICE Bank of America Merrill Lynch as at 31 December 2019. The universe shown is the combination of the relevant portions of the ICE Bank of America Merrill Lynch Global High Yield Bond Index (HW00) and ICE Bank of America Merrill Lynch 0-1 Year High Yield Index (H544). Past performance is not a reliable indicator of future results.
(2) AXA IM as at 30 September 2020. Subject to change at any time at AXA IM’s discretion.
(3) AXA IM as at 30 June 2020