AXA World Fund US Short Duration High Yield Bonds
International trade wars, concerns over global growth and interest rate uncertainty are just some of the events that have created an uncertain market environment, and could cause some jitters in the high yield sector. For investors concerned about this changing environment, short duration high yield bonds could offer a way to access yield, while minimising portfolio volatility.
AXA WF US Short Duration High Yield Bonds aims to achieve high attractive income and capital growth by investing in US high yield bonds which are expected to mature or be redeemed within three years.
Who is it for?
- Looking for an attractive regular income.
- Focused on reducing interest rate risk.
- Seeking to mitigate market volatility.
Why invest in?
Focus on limiting drawdowns during turbulent markets
The Fund’s performance in market downturns is driven by our disciplined credit selection process which focuses on high-quality bonds and improving high yield companies. Since 20163, the Fund has had only two quarters with a total return below -1%.
Access the US high yield market with an experienced, knowledgeable team
Our dedicated team of US high yield credit specialists have experience working throughout multiple economic and credit cycles, with resources designed to meet the needs of a large, global client base.
Minimise default risk in turbulent markets with an active strategy
The table below shows that, since 2017, the AXA WF US Short Duration High Yield Bonds fund has had no defaults4, compared with 1055 across the US high yield broad market.
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.
The number of US fixed income investment professionals at AXA IM.
The number of defaults in the Fund since 2017, compared with 105 in the broader market.
The number of credit specialists and credit analysts covering the US high yield market at AXA IM.
* AXA IM as at 31 March 2020. Information about the staff and / or AXA Investment Managers is only informative. We do not guarantee the fact that
staff remain employed by AXA Investment Managers or continue to exercise in the teams of AXA Investment Managers.
** J.P. Morgan as at 30 June 2020. AXA IM US SDHY Representative Portfolio stream (data prior to March 2004 is based on legacy portfolios managed
in the same investment strategy), as at 30 June 2020