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AXA Sterling Credit Short Duration Bond Fund
Last NAV 1.0700 GBP as of 07/04/20
Why this fund
Providing your clients with the lower volatility benefits of a short duration strategy and, in turn, the prospect of superior, risk-adjusted returns.
The AXA Sterling Credit Short Duration Bond Fund forms part of the successful suite of AXA Investment Managers short-duration bond strategies.
The Fund aims to provide investors with consistent, incremental investment returns while, at the same time, minimising overall interest rate risk.
Reasons to invest?
An actively-managed and highly diversified portfolio which aims to deliver consistent returns by:
- Focusing on income generation and capital preservation
- Maintaining a low volatility profile in order to mitigate downside risk but enabling the Fund to capture upside returns
- Minimising the volatility and the interest rate risk by investing in securities with maturities (or call dates) of less than five years
- Diversifying the portfolio with over 100 holdings across diverse sector, issuer, rating and maturity levels.
AXA Investment Managers offers a wealth of experience built over various market and economic cycles, with more than 10 years' managing dedicated, short duration bond strategies.
Other short duration strategies AXA IM offer include AXA WF Emerging Markets Short Duration Bonds and the AXA US Short Duration High Yield Fund.
- Launch date: 12/11/2010
- Sector: Sterling Corporate Bond
- Lead Portfolio Manager: Nicolas Trindade
- Deputy Fund Manager: Nick Hayes
- Pay dates: Last day of Feb, 31 May, 31 Aug & 30 Nov
The aim of the Fund is to provide income combined with any capital growth.
Synthetic Risk & Reward Information scale
The risk category is calculated using historical performance data and may not be a reliable indicator of the 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 : 29/02/20
Key points for February 2020 The short-dated and broad sterling credit markets posted flat and negative total returns respectively this month as falling gilt yields partially offset sharply wider credit spreads. Despite this difficult environment, the AXA Sterling Credit Short Duration Bond Fund (‘the Fund’) posted a positive total return of +0.08% (net of fees) in February. Market snapshot Credit spreads sharply widened in the last week of February as the global spread of the coronavirus intensified beyond Asia, stoking fears of a global recession, with the S&P 500 posting its worst weekly performance since the global financial crisis. In an attempt to support markets, major central banks communicated that they stood ready to implement further accommodative policies to combat any negative economic impact from the coronavirus. UK gilt yields fell in February, benefiting from safe-haven flows as investors became increasingly anxious about the coronavirus. Fund performance The Fund’s performance benefited from lower gilt yields, its attractive carry (income) and defensive positioning. Cyclical names underperformed defensive names in February due to fears of a global recession. Despite this difficult environment, the Fund posted a positive total return of +0.08% (net of fees) in February, leading to +0.48% and +3.22% for 2020 year-to-date and one-year returns respectively. Fund activity We were active in February, managing flows while keeping the Fund in line with our active strategies, with a bias towards low-beta names and defensive sectors. Sterling investment grade primary issuance was £7 billion this month, the busiest February since 2009 and despite volatility in the second half of the month. As such, we participated in several new issues, including French luxury company Louis Vuitton, German conglomerate Siemens and First Abu Dhabi Bank, which were all new additions to the Fund. We also added new exposures to Australian energy company APT Pipelines and UK student accommodation company Student Finance in the secondary market during the month. Outlook Given the broader spread of the coronavirus beyond Asia and the lack of monetary policy options left to central banks to accelerate growth and mitigate its negative impact, global growth forecast has been lowered with expected much slower growth in the US and UK, and a recession in the Eurozone. As such, we still maintain a defensive bias within the Fund, as we believe valuations have not cheapened up enough yet to start re-risking it.
Any performance shown is gross of the ongoing charge for the share class selected. The deduction of fees reduces the level of returns.Past performance is not a guide to future performance. The value of investments can fall as well as rise and you may get back less than invested. The fund can use derivatives for investment purposes. These instruments may cause periods of high volatility in the price of the shares of the fund.
|Reference index||Start date||End date|
|Performance table||Net performance||Reference index||Start date||End date|
|Risk table||Fund volatility||Benchmark volatility||Tracking error||Information ratio||Sharpe ratio||Beta||Alpha|
|First NAV date||12/11/10|
|Asset class||FIXED INCOME|
|Legal authority||THE FINANCIAL CONDUCT AUTHORITY|
|Fund Manager||Nicolas TRINDADE|
|Investment team||MT Active UK Investment Grade FI & Flexible Global Strategies|
Subscription and redemption
Your orders to buy, sell or transfer shares in the Fund, must be received by the Administrator by 12 noon on any working day to receive that day's Fund price. Also this Fund has another Valuation Point on the last business day of each month and therefore an additional dealing cut off at 4.30pm on that day only. Please note that if your order is placed by an intermediary or Financial Adviser, they may require extra processing time.The Net Asset Value of this Fund is calculated on a daily basis. Minimum initial investment: £1,000,000 Minimum subsequent investment: £5,000