AXA IM FIIS Europe Short Duration High Yield: The sweet taste of income
In an uncertain, volatile economic environment, short duration bonds could be suitable for investors seeking to generate current income with limited volatility. Fully diversified across industry sector, company and bond issue, the European High Yield market is expected to double over the next three years, offering both carry returns and capital appreciation. In addition, the current environment is favourable to High Yield credit with strong company fundamentals.
Why invest in AXA IM FIIS Europe Short Duration High Yield?
- The Fund aims to generate a stable income-based return by investing in European High Yield bonds, with a focus on securities with expected maturities of less than three years
- Implementing rigorous bottom-up and top-down analysis, the Fund focuses on selecting companies with stable or rapidly improving fundamentals, and a capacity to service their debt
- The team of four European High Yield investment specialists, based in London and Paris, has an average industry experience of nearly 13 years*
- The investment team leverages off the shared resources of AXA IM, which has extensive experience managing High Yield and Short Duration strategies (€15.7bn and €13.6bn under management respectively)*
What are the risks associated with investing in the AXA IM FIIS Europe Short Duration High Yield Fund?
- Risk of loss of invested capital
- Credit risk: High Yield bonds have greater risk of default or downgrade than Investment Grade bonds
- Liquidity risk: High Yield bond prices can be more volatile than Investment Grade corporate bonds
- Interest rate risk: if interest rates rise, the price of the bond will fall and vice-versa
- Investors are advised to refer to the current prospectus for detailed descriptions of risk considerations