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    (Axa wf global strategic bonds germany sept 2013 [kompatibilitätsmodus]) (Axa wf global strategic bonds germany sept 2013 [kompatibilitätsmodus]) Presentation Transcript

    • AXA WF Global Strategic Bonds 19th September 2013 Nick Hayes – Portfolio Manager Citywire, HOTEL HESSISCHER HOF Frankfurt This document is for Professional Adviser use only. This communication must not be relied upon by Retail Clients. Circulation must be restricted accordingly.
    • 2 Fixed Income asset class as a continuum Broad universe for all economic environments Two key drivers of bond performance: interest rates and credit spreads AAA AA A BBB BB B CCC and below Bond performance is mainly driven by interest rates, credit spreads or a combination of the two Interest rates Credit spreads Low Volatility / Lower Yield High Volatility / Higher Yield
    • 3 Asset class total return for different market environments Source: AXA IM / Bloomberg as at December 2012 *ISM: Institute of Supply Management Manufacturing Index tracks the amount of manufacturing activity that occurred on monthly basis. EOY CHG = End of the year change. The performance of different parts of the bond asset class will be driven by the temperature of the global economy, measured below by the ISM* manufacturing index
    • 4 Reasons to invest in a total return unconstrained fund: We asset allocates across our entire Fixed Income expertise in order to provide superior risk adjusted returns, without reference to any benchmark. As such the performance is measured by the total return (income plus capital) of the fund. Active asset allocation: ability to invest across the entire Fixed Income universe Flexibility: portfolio construction driven by AXA IM Alpha groups, not by a third party benchmark Diversification: our process is based on a strategy of diversification aiming to provide superior returns What we don’t do: x We are not a long / short absolute return fund x One Alpha group does not provide 100% of the risk x This is not a fund of funds
    • 5 Fixed Income global process, asset allocation and portfolio construction Defensive Intermediate Alpha source Interest rates Inflation Alpha groups Country allocation Term structure Inflation Alpha source Interest rates Credit Alpha groups Country allocation Investment Grade Alpha source Credit Emerging Markets Currency risk in Emerging Markets Alpha groups Country allocation High Yield Emerging Markets Aggressive allocation 60 % 0 % Defensive allocation 100 % 0 % Intermediate allocation AXA WF GLOBAL STRATEGIC BONDS 60 % 0 % Aggressive Defensive / Intermediate / Aggressive, in the context of AXA WF Global Strategic Bonds, are proprietary AXA Investment Managers terms, and describe the way in which we broadly segregate the Fund’s investable bond universe. In absolute return terms, we view Defensive bonds as those where performance is predominantly driven by interest rate movements, such as government bonds. Intermediate bonds performance is driven by a mixture of interest rates and credit spread, typically investment grade corporate bonds. Aggressive bonds are those where performance is driven predominantly by credit spread.
    • 6 Fund objective: to maximise total return through strategic asset allocation across our entire Fixed Income expertise, in order to provide income and capital appreciation, without any benchmark Portfolio characteristics Managing money for total return not relative to a benchmark AXA WF Global Strategic Bonds Duration range 0-8 years Minimum investment lines 100 Maximum exposure per issuer 2% (excluding G10 Government debt) Investment universe: direct lines, primarily cash bonds with full use of derivatives Luxemburg SICAV 11 May 2012 Institutional & retail share classes in EUR, GBP, USD and CHF. Distribution share class annual/quarterly Management Fees: 50bps for Institutional Investors and 100bp for retail clients Non USD exposure hedge back to base currency (with the exception of EMD local currency positions) Base currency USD Fund registered in France, Italy, Spain, UK, Belgium, Netherlands, Austria, Switzerland and Germany.
    • AXA WF Global Strategic Bonds Asset allocation 7 Defensive Allocation Intermediate Allocation Aggressive Allocation Source: AXA IM as at 31/08/2013 unless otherwise specified. Data is unaudited and sourced from our front office portfolio management system, ThinkFolio®. Past performance is not a guide to future performance. Yield figures quoted are not guaranteed and will change in the future. Totals may not equal 100% due to rounding. Portfolio AUM: $166.4m Duration: 2.73 Yield: 3.89% Spread to gov: 333 Number of holdings: 233 Defensive: 21.2% Intermediate: 36.4% Aggressive: 42.3% Derivatives: -23.7% Key Characteristics Asset Allocation
    • AXA WF Global Strategic Bonds Flexible asset allocation 8 Defensive Allocation* Source: AXA IM as at 31/08/2013. Based on month end positions. *Negative cash due to one instance of a cash outflow trading and settling in different months. Data is unaudited and sourced from our front office portfolio management system, ThinkFolio®. Past performance is not a guide to future performance. Historical high, low and current sector allocations (18/05/2012 – 31/08/2013) High Current Low Reduced duration, and cash invested in spread product US allocation is in TIPS European core allocation provides liquidity and relative value vs Treasuries Fund Manager comments Defensive: 21.2% Intermediate: 36.4% Aggressive: 42.3% Derivatives: -23.7% Current Asset Allocation -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% Cash US Government Core Europe Governments Periphery Europe Governments Rest of World Governments Inflation-linked
    • 9 AXA WF Global Strategic Bonds Flexible asset allocation Intermediate Allocation Source: AXA IM as at 31/08/2013. Based on month end positions. Data is unaudited and sourced from our front office portfolio management system, ThinkFolio®. Past performance is not a guide to future performance. Historical high, low and current sector allocations (18/05/2012 – 31/08/2013) High Current Low Low allocation in US investment grade due to threat of rising rates and higher event risk Recent increase in allocation to European credit after rise in yields. Fund Manager comments Defensive: 21.2% Intermediate: 36.4% Aggressive: 42.3% Derivatives: -23.7% Current Asset Allocation 0% 5% 10% 15% 20% 25% 30% 35% US IG Credit Europe & UK IG Credit
    • 10 AXA WF Global Strategic Bonds Flexible asset allocation Aggressive Allocation Source: AXA IM as at 31/08/2013. Based on month end positions. Data is unaudited and sourced from our front office portfolio management system, ThinkFolio®. Past performance is not a guide to future performance. Historical high, low and current sector allocations (18/05/2012 – 31/08/2013) High Current Low Increased allocation to developed world High Yield after recent sell off Potential emerging market volatility on economic slow down and continued outflow story Fund Manager comments Defensive: 21.2% Intermediate: 36.4% Aggressive: 42.3% Derivatives: -23.7% Current Asset Allocation -5% 0% 5% 10% 15% 20% 25% USD Emerging Markets Local Ccy Emerging Markets FX Local Emerging Markets US High Yield Europe High Yield
    • Current strategy: Rates 11 Source: AXA IM as at 31/08/2013. Yield figures are calculated on an annual basis. Yield figures quoted are not guaranteed and will change in the future. Data is unaudited and sourced from our front office portfolio management system, ThinkFolio®. Overview Duration vs. asset allocation Conventional by countryIndex-linked by country Duration contribution by currency Total Exposure 18.7% Conventional Index-linked % of the fund 8.7% 10.0% Yield 2.02% 1.52% Maturity 8.01 years 5.69 years Defensive Intermediate AggressiveDuration 0,7% 4,9% 3,2% 0% 1% 2% 3% 4% 5% 6% US UK Germany 1,83 1,28 0,81 0,0 0,4 0,8 1,2 1,6 2,0 USD EUR GBP
    • Current strategy: Banking & Insurance 12 Source: AXA IM as at 31/08/2013. (1) Merrill Lynch seniority. (2) Rating used is the worst of S&P, Moody’s and Fitch. Yield figures are calculated on an annual basis. Yield figures quoted are not guaranteed and will change in the future. Data is unaudited and sourced from our front office portfolio management system, ThinkFolio®. MVST = Macro, Valuation, Sentiment, Technicals. Overview Banks are at start of multi year de-leveraging process (M) Regulation will be a big driver of how banks are structured (M) Volatility and liquidity are primary considerations (S, T) In area of such uncertainty clearly the valuations are invariably very attractive (V) Breakdown by country Breakdown by rating2Breakdown by seniority1 Fund Manager comments Total Exposure 16.18% Banking Insurance % of the fund 10.7% 5.5% Yield 4.73% 5.50% Maturity 5.42 years 6.80 years 3,2% 4,1% 3,4% 0,7% 4,8% 0% 1% 2% 3% 4% 5% 6% A BBB BB Banking Insurance 4,2% 1,9% 0,8% 0,9% 0,8% 0,5% 0,7% 0,0% 0,9% 3,5% 0,5% 0,4% 0,7% 0,5% 0% 1% 2% 3% 4% 5% UK US France Netherlands Sweden Germany Italy Spain Turkey Ireland Banking Insurance
    • Current strategy: Peripherals 13 Source: AXA IM as at 31/08/2013. (1) Rating used is the worst of S&P, Moody’s and Fitch. (2) ML Lvl 3. Yield figures are calculated on an annual basis. Yield figures quoted are not guaranteed and will change in the future. Data is unaudited and sourced from our front office portfolio management system, ThinkFolio®. MVST = Macro, Valuation, Sentiment, Technicals. Overview Sovereign debt = credit risk (M) Prefer to take peripheral risk in corporate rather than sovereign debt Better diversification (M), stronger balance sheets (M), higher yield (V) Risk of fallen angels (T) Sovereign / corporate correlation to remain high (S) Breakdown by sector2 Breakdown by rating1Breakdown by country Fund Manager comments Total Exposure 10.8% Ireland Italy Portugal Spain % of the fund 2.4% 3.8% 0.4% 4.1% Yield 5.56% 4.92% 5.14% 3.16% Maturity 5.34 years 6.36 years 5.70 years 4.91 years 2,1% 0,8% 0,5% 0,1% 0,9% 0,5% 2,0% 5,0% 0% 1% 2% 3% 4% 5% 6% 8,0% 1,7% 0,5% 0,6% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% BBB BB B CCC
    • 14 -14% -12% -10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 22% 24% 29% 33% 32% 31% 25% 29% 34% 32% 36% 39% 36% 35% 39% 42% 43% 52% 54% 46% 42% 40% 37% 39% 38% 38% 36% 38% 36% 32% 31% 36% 35% 24% 17% 21% 27% 29% 38% 33% 28% 30% 28% 23% 28% 33% 30% 21% May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Source: AXA IM / Bloomberg as at 31/08/2013. Performance data given is for the I Acc USD shareclass since launch on 14/05/2012 net of fees and taxes. *Performance indicator. Past results are not necessarily indicative of future performance. No assurances can be made that profits will be achieved or that substantial losses will not be incurred. AXA WF Global Strategic Bonds Performance and asset allocation Defensive Intermediate Aggressive Fund performance BofA Merrill Lynch Global Broad Market Index* 14 Cautious launch Major concerns around Europe / Gr€xit High exposure to Core and Cash European break up fears decrease Further central bank support promised Start to build position in short dated peripheral Add bank debt and some higher spread exposure Take profit on low beta investment grade Recycle into the barbell of core / cash and high yield / EMD US elections and reporting season removes Europe from headlines Lower yields in both Govt bonds after credit markets stall More defensive stance on fund after strong 6 months 2013: Finally the end of the bull run? Reduce duration Increase index-linked exposure The “Fed to Taper” sell off Bond sell off re-prices all asset classes Increase exposure to develop world high yield 1 Month 3 Months YTD 2013 Since Inception Performance Volatility Performance Volatility Performance Volatility Performance Volatility AXA WF Global Strategic Bonds I USD** -0.40 - -1.62 4.40 -0.24 3.71 9.24 3.37
    • GSBF monthly returns 15 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 MonthlyTotalReturn% EMD 3.5 £ IG 4.2 EU HY 2.5 EU INF 2.3 EU HY 2.1 £ INF 3.3 EU HY 2.3 £ INF 3.3 BUND 1.3 £ INF 4.0 £ IG 3.0 EU HY 0.2 BUND -1.0 £ IG 2.2 EU HY 0.4 US HY 2.0 EMD 3.7 EU INF 1.9 EU HY 2.2 US IG 1.3 EU INF 2.2 US HY 1.6 US HY 1.4 EU IG 1.3 GILTS 1.8 EMD 2.9 EU IG -0.2 UST -1.3 EU HY 2.1 EU IG -0.2 EU HY 2.0 EU INF 3.6 GSBF 1.2 GSBF 1.9 GSBF 1.3 EU HY 1.9 £ INF 1.5 EU HY 0.3 £ IG 1.1 £ IG 1.6 EU HY 2.6 US HY -0.5 EU IG -1.6 US HY 1.9 £ INF -0.4 £ IG 0.6 GSBF 2.9 US HY 1.2 EMD 1.6 £ IG 1.1 £ IG 1.3 GSBF 1.0 GSBF 0.0 GILTS 0.8 US HY 1.0 EU INF 2.6 GSBF -0.7 EU HY -2.1 EU INF 1.4 GSBF -0.4 US IG 0.5 US IG 2.8 EMD 1.2 US HY 1.4 EU IG 1.1 EMD 1.2 EU IG 0.9 EU INF -0.4 US IG 0.7 BUND 0.9 US HY 1.9 EU INF -0.8 GILTS -2.3 GSBF 1.4 UST -0.5 GSBF 0.2 EU IG 2.3 EU IG 1.1 £ IG 1.1 US INF 0.9 EU IG 0.9 EU INF 0.8 US IG -0.7 UST 0.6 EU HY 0.6 US IG 1.7 BUND -1.5 GSBF -2.6 EMD 1.2 £ IG -0.6 EU IG -0.3 BUND 2.1 £ IG 1.0 US IG 0.7 EMD 0.9 GILTS 0.8 EMD 0.7 US INF -0.9 EU HY 0.5 EU IG 0.5 GSBF 1.5 £ IG -1.7 US HY -2.7 EU IG 0.8 US HY -0.6 UST -0.4 EU HY 2.1 £ INF 0.7 EU IG 0.7 US HY 0.9 US HY 0.7 BUND 0.7 UST -1.0 US HY 0.5 GSBF 0.3 EU IG 1.4 UST -2.0 US IG -2.8 US IG 0.8 EU INF -0.6 US INF -0.6 GILTS 2.0 US IG 0.4 US INF 0.5 £ INF 0.5 GSBF 0.6 £ IG 0.3 £ IG -1.0 GSBF 0.3 US INF 0.2 £ INF 1.1 US IG -2.3 EU INF -3.3 GILTS 0.8 US IG -0.7 EU INF -0.7 US INF 2.0 UST -0.1 UST -0.4 EU INF 0.4 UST 0.6 US IG 0.0 EU IG -1.2 US INF 0.1 EU INF 0.1 GILTS 1.1 GILTS -2.5 US INF -3.8 US INF 0.6 BUND -1.0 GILTS -0.9 US HY 1.9 BUND -0.2 BUND -0.5 BUND -0.1 BUND 0.5 GILTS -0.5 EMD -1.3 £ INF -0.1 UST 0.1 UST 1.1 £ INF -3.1 £ IG -4.2 £ INF 0.6 GILTS -1.0 £ INF -1.8 UST 1.1 US INF -0.2 GILTS -0.7 UST -0.2 US INF 0.5 UST -0.5 BUND -1.8 EMD -0.3 US IG 0.0 US INF 1.0 EMD -3.6 £ INF -4.8 BUND 0.3 US INF -1.5 BUND -2.6 £ INF 0.2 GILTS -0.2 £ INF -3.5 GILTS -0.7 US IG -0.1 US INF -0.6 GILTS -1.9 EU INF -0.6 EMD -0.6 BUND 0.6 US INF -4.7 EMD -4.9 UST -0.2 EMD -2.6 S&P 4.1 S&P 1.4 S&P 2.3 S&P 2.6 S&P -1.8 S&P 0.6 S&P 0.9 S&P 5.2 S&P 1.4 S&P 3.8 S&P 1.9 S&P 2.3 S&P -1.3 S&P 5.1 S&P -2.9 Defensive Intermediate Aggressive UST US Treasuries US IG US Investment Grade Corporate Bonds US HY US High Yield Bonds BUND German Government Bonds EU IG Euro Investment Grade Corporate Bonds EU HY Euro High Yield Bonds GILTS UK Government Bonds £ IG Sterling Investment Grade Corporate Bonds EMD Emerging Market Debt US INFUS TIPS EU INFEuro Inflation Linked £ INF UK Inflation Linked Gilts Source: AXA IM / Bloomberg / BofA Merrill Lynch as at 31/08/2013. Past performance is not a guide to future performance
    • 16 Conclusion Global in terms of geography and asset class Exposure to Government bonds, Index Linked, Investment Grade, High Yield corporates and Emerging Market Debt Outsourcing your entire bond allocation Access to global AXA Fixed Income expertise in one fund Unconstrained Portfolio construction not driven by a benchmark Access to the entire bonds asset class Diversified Efficient
    • 17/23 Fund specific risks • General market risk • Interest rate risk • Credit risk • Liquidity risk • Counterparty risk • Political risk • Risk of investing in emerging markets countries Please refer to the full Prospectus, to sections entitled ‘General Risk Considerations’ and ‘Special Risk Considerations’ for detailed statements of risks. The Prospectus is available on our homepage www.axa-im.de. The risk category is calculated using historical performance data and may not be a reliable indicator of the Sub-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.
    • 18 Disclaimer Important notice: Please also note the following information and read the applicable prospectus including the terms of contract, which is the exclusive base for the purchase of investment fund units. The information in this presentation does not contain an offer to enter into a contract and does not constitute investment, legal, tax or other advice by AXA Investment Managers Deutschland GmbH. Its sole purpose is to facilitate your own investment decision. Due to its simplification, this document is partial and the information can be subjective. The opinions within this document reflect our current assessment at the time of creation; that assessment can change without notice. The purchase of investment fund units is exclusively based on the current sales prospectus and the information included therein. It is not allowed to give any information or make any declaration differing from the sales prospectus. Herewith we expressly distance ourselves from such differing information or declaration, particularly regarding differing information or declaration from our appointed distribution partners and information centres or any other third party. You will receive the sales prospectus, Key Investor Information Document (KIID), annual and semi-annual report free of charge at AXA Investment Managers Deutschland GmbH • Bleichstraße 2-4 • 60313 Frankfurt/Main or from our distribution partners or under www.axa-im.de. Prior to any transaction an individual detailed investment advice should be obtained. As part of this consultation you will also be informed of costs and fees associated with the purchase of one of the mentioned products. While providing investment services, AXA Investment Managers Deutschland GmbH and/or its affiliates may receive or grant benefits (commissions, fees or other payments as well as all monetary benefits). The tax treatment relating to the holding, acquisition or disposal of units in the fund depend on each investor’s tax status or treatment and may be subject to change. Please contact your tax and financial adviser prior to any transactions. The information in this presentation does not constitute any investment, legal, tax or other advice. Its only purpose is to facilitate your own investment decision. All tax explanations are based on actual common information. A guarantee for any changes of the tax evaluation by legislation, jurisdiction or writs of the financial administration cannot be assumed. Any potential investor is strongly encouraged to seek advice from its own tax or financial advisors. You will also be informed of costs and fees, which will be incurred by buying one of the named products. As far as we refer to information/graphics of third parties we point out that a proper investigation of the information did not take place and that we do not adopt it as our own. We therefore expressly dissociate ourselves from the content of all third party information and are not liable for its content. The data, figures, declarations, analysis, predictions, concepts and any other information provided in this presentation are based on our state of knowledge at the time of creation date. Nevertheless, unintended erroneous statements or presentations may occur. Also, the mentioned information may be amended at any time without notice. Therefore, a liability or guarantee for the up-to-dateness, correctness and completeness of the allocated information can not be assumed. In particular, there is no obligation to remove any information that is no longer up to date or to identify it expressly as such. Performance results of the past offer no guarantee and are no indicator for any future returns or trends of an investment fund. Value and yield of an investment in funds can rise and fall and are not guaranteed. As the case may be, investors may receive less than the initial capital invested when their investment fund units are redeemed and they can even suffer a total loss. Also exchange-rate fluctuation can affect the value of your investment. The published performance data does not include commission or any other costs which possibly incur when issuing and/or redeeming units. The indication of performance-results for periods of less than a year occurs for the purpose to provide the distributors with complete information. We point out that the declaration of performance-results for periods of less than a year provided by investment service companies is not allowed in accordance with the German Wertpapierdienstleistungs- Verhaltens- und Organisationsverordnung (WpDVerOV). Please note that performance-results of the past are no indicator for any future investment income or any trend of an investment fund. Please note furthermore that the information in this presentation are based on simulate historical view. Such information is no reliable indicator for the future. It is provided for illustrative purposes only. The information in this document is exclusively addressed to distributors who receive this document directly from AXA Investment Managers Deutschland GmbH. It is to be treated strictly confidential. The recipients are not allowed to pass this document and the information contained herein on to a third party, in whole or partially, without the prior written consent of AXA Investment Managers Deutschland GmbH. This document is for distributor information purposes only. We explicitly point out that this document does not comply with the requirements of the directive 2004/39/EG (MiFID) and the related directives and regulations as well as the German Wertpapierhandelsgesetz (WpHG) and Wertpapierdienstleistungs- Verhaltens- und Organisationsverordnung (WpDVerOV). Therefore, this document is not suitable for any kind of sales services, consulting or financial services vis-à-vis clients, especially by investment services companies. Additional Information for investors in Austria: The current sales prospectus of the AXA WF Umbrellas were published in electronic form on www.axa-im.at on January 2013 and by deposition at AXA Investment Managers Deutschland GmbH, Bleichstraße 2-4, 60313 Frankfurt am Main, as well as at the information centre and paying agent UniCredit Bank Austria, Schottengasse 6-8 in1010 Wien. The announcement (Hinweisbekanntmachung) was made at February 2013. Investors and interested persons in Austria receive the prospectus, the fund rules (Fondsbestimmungen) and the annual and semi-annual report of the AXA WF Umbrellas free of charge at AXA Investment Managers Deutschland GmbH, at the information centre and paying agent mentioned above and on www.axa-im.at. With this information centre and paying agent, further information and documents regarding the AXA WF Umbrellas may be examined as well as redemption requests may be filed. The issue prices and redemption prices are published in the “Wiener Zeitung” every trading day and are also available at this information centre and paying agent and on www.axa-im.at. - for distributors only and not for private investors -