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This fund is invested principally in US high yield corporate bonds to provide a higher level of income. US domiciled names are selected by Axa's US office, whilst Pan European domiciled names are managed from Axa's London office. The fund is benchmarked for reference purposes only against the Merrill Lynch Global High Yield Index, no formal benchmark constraints apply to the construction of the fund. Non-sterling denominated investments are hedged back to sterling. The fund’s IA peer group is the Sterling High Yield Sector.
Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.
|Sector||£ High Yield|
|Dividends paid||28 Feb, 31 May, 31 Aug, 30 Nov|
|Standard initial charge||4.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||1.25%|
|Ongoing charges figure||1.29%|
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
This provides a means of gaining core exposure to the US dominated, global high yield corporate bond market. Historically the mandate has offered a relatively more defensive means of gaining exposure to this asset class, characterised by relatively lower volatility and drawdowns. The portfolio is highly diversified and benefits from well-resourced and experienced teams located in Europe and the US. The current fund objective was adopted in November 2003.
|High yield bonds||91|
The management team attempt to identify companies with improving fundamentals at relatively attractive levels of credit risk. A conservative, value approach to investing in this asset class is employed by the portfolio managers. The focus of the fund is very much on income generation, seeking to minimise default risk and rating deterioration through broad portfolio diversification, as opposed to targeting high capital returns. The US and European portfolios are run independently from their respective locations with a consensus agreement being reached on top down strategies and sector risk. Performance attribution expectations: 5% duration management, 10% sector selection, 85% security selection. The neutral US high yield position is 80% of the portfolio.
|Fund data updated on||21/07/17|
|High yield bonds||91|
As at: 31/05/2017
.8% Columbus Intl Inc 7.38% Bds 30/03/21 Usd200000144a
.8% Dell International Emc Corp 5.875% 06/15/2021
.8% Jaguar Hldg Co Ii/Jaguar Merger Sub 6.375% Bds 01/08/23 Usd2000
.8% Jll/Delta Dutch Newco Bv 7.5% 02/01/2022
.8% Kenan Advantage Group Inc/The 7.875% 07/31/2023
.8% Rayonier Am Products Inc 5.5% Bds 01/06/24 Usd1000
.8% Stearns Holdings Inc 9.375 15/08/20
.8% Ziggo Sec Fin Bv 5.5% Bds 15/01/27 Usd150000 144a
.7% Digicel Ltd Callable Notes Fixed 6.75% 01/Mar/2023
.7% Nufarm 6.375% Bds 15/10/19 Usd1000 144a
The fund currently holds approximately 460 individual securities. The neutral US high yield position is 80% of the portfolio. Average weighted credit quality will be about B.
The fund will consist of 100% US/Pan European high yield securities. There are no specific geographic allocation constraints. Maximum exposure to any one sector 20%.
|Average monthly relative returns||Bestinvest MRI|
|12/13||13/14||14/15||15/16||16/17||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
Whitbeck is a US fixed income portfolio manager/analyst with AXA Investment Managers. Prior to joining AXA Investment Managers in 2002, he was an analyst in the investment banking division of Lehman Brothers, where he performed financial analysis on companies in the consumer and retail sectors and worked on a variety of M&A and high yield transactions. He holds a B.A. from Williams College and has the CFA professional designation. Gledhill joined Axa Global Investors as Head of Global Credit in 2011. Previously he had been a fixed income manager at Henderson, having joined the group in 2009 following their take over of New Star Asset Management. Gledhill started his investment career at M&G in 1992 as a trainee fund manager on the UK equity desk, switching to the global fixed interest team in 1995. He joined New Star in 2002. He is a graduate of Oxford University.
James Gledhill / Carl Whitbeck has 4.9 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.05%. During the worst period of relative performance (from September 2013 - September 2016) there was a decline of 7% relative to the index. The worst absolute loss has been 11%.
|Periods of worst performance|
|Absolute||-11% (May 2015 - February 2016)|
|Relative||-7% (September 2013 - September 2016)|
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.