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AXA WF Euro 7-10

ISIN LU0251659180

Last NAV 189.4800 EUR as of 14/01/20

Overview

Investment objectives

The Sub-Fund's investment objective is to seek performance by investing mainly in governments and corporate debt securities in Euros, over a medium term period. The Sub-Fund will be managed with an interest rate sensitivity between 5 and 10.

Risk

Synthetic Risk & Reward Information scale

1 2 SRRI Value 3 4 5 6 7

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.

Why is this Fund in this category?

The capital of the Sub-Fund is not guaranteed. The Sub-Fund is invested in financial markets and uses techniques and instruments which are subject to some levels of variation, which may result in gains or losses.

Additional risks

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. 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.

Investment horizon

This Sub-Fund may not be suitable for investors who plan to withdraw their contribution within 3 years.

Main documents

KIID 03/07/2019

Prospectus 07/10/2019

Fund manager comment : 31/12/19

December witnessed an easing in uncertainty. A so-called “phase 1” deal was concluded between the US and China (albeit still not signed) while the general elections in the UK led to a wide majority for the Conservative party, thereby triggering the transition phase for Brexit that should last until end-2020. Economic surveys validated the stabilisation in activity in the main economies. The US and China finally announced a so-called Phase 1 trade agreement that eliminated the prospect of an increase in import tariffs on $160bn worth of Chinese imports planned for 15 December. Surveys undertaken in the manufacturing sector showed increasing signs of stabilisation. Furthermore, the latest payrolls figure harboured welcome news with employment showing the biggest monthly increase since January. Unemployment was therefore down 3.5%, its lowest level for five decades while wages were revised upwards to +3.2% in October, before stabilising slightly at around +3.1% in November. In line with expectations, the Federal Reserve made no change to its monetary policy during the last meeting of the year and was keen to state that its policy would remain accommodative, barring a “ major shift” in activity. Finally, US policy continued to create uncertainty. While the House of Representatives voted in favour of impeachment, this must be validated by the Senate, which is controlled by the Republicans. As such, it seems unlikely that Donald Trump will be impeached, unless public opinion, which has only slightly shifted in favour of an impeachment, completely reverses. In the eurozone, recent data has improved but remains weak. The composite PMI index notched up slightly in December to 50.9 from 50.6 in November. At the same time, contagion from the manufacturing sector to the domestic sector seems to be underway. PMIs in the services sector are well on track to show their lowest quarterly average since 2014, and consumer confidence is vacillating with households concerned about their job safety. On the trade front, the US administration let slip the deadline of 13 November for import tariffs on vehicles, but recently threatened to impose a tariff of 100% on French products for a total value of $2.4bn in response to the new French digital tax. No change in monetary policy was announced during the first conference held by Christine Lagarde. The latest Eurosystem forecasts justified the ECB’s monetary easing plan of September with growth set to remain weak in 2020 at +1.1%. At the same time, the inflation forecast was increased by 0.1pp to 1.1% for 2020, whereas prices should continue to rise slowly to reach 1.6% in 2022. Finally, the strategic review should start next January and could again help justify another pause in 2020. In the UK, the elections confirmed Boris Johnson’s position but with an even greater majority than opinion polls had suggested. The Conservative party therefore obtained 365 seats (vs. 318 in 2017), more than the Labour party at 203 (262). As such, the government should adopt the draft withdrawal agreement and leave the EU before the extension period for Article 50 expires on 31 January. However, uncertainty concerning Brexit is likely to persist, with the Conservatives pledging to not prolong the transition phase to beyond end-2020. This transition phase should prevent WTO laws from applying directly by leaving the time to negotiate new trade agreements. The Conservative promise not to prolong this transition period before 1 July 2020 is creating uncertainty. In Japan, the Q3 GDP growth rate was revised upwards in the second estimate, from +0.2% to +1.8% annualised. The expected increase in VAT played a crucial role. However, growth is set to plummet in Q4, as suggested by retail sales, which were down 14.4% in October relative to the previous month. The government approved fresh budgetary stimulus of JPY 26,000bn in order to offset the impacts of the rise in VAT and the damage caused by typhoons. Meanwhile, the Bank of Japan maintained status quo at its last monetary policy meeting. On the fund, we remained neutral in terms of duration compared with our benchmark during the month. In terms of country allocation, we remain quite neutral on Italy and Spain. On the core/semi-core countries, we are also close to neutral. We also maintained a long strategy on European inflation breakevens on the fund. In terms of our asset allocation, we are maintaining our overexposure to credit, but have partly reduced this exposure at the same time but with a more obvious bias towards senior corporates for which certain valuations have reached particularly expensive levels upstream of the reopening of the primary market in January. At the same time, we are also underweight on covered debts and returned to close to neutral on quasi-sovereign debts.

Performance

Performance chart

Period

1M
3M
6M
1Y
3Y
5Y
8Y
10Y
YTD
Since launch

Start date

End date

The figures provided relate to previous months or years and past performance is not a reliable indicator as to future performance. The Fund may not have a reference index. In such case, the Fund’s performance indicator is given as a basis for comparison only.

SRRI stands for Synthetic Risk & Reward Information: From 1 lower risk to 7 higher risk. Lower risk has potentially lower reward and higher risk has potentially higher reward. 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.

Benchmark

Reference index Start date End date
- - -

Performance table

End date

Performance table Net performance Reference index Start date End date
- - - - -
1M - - - -
QTD - - - -
3M - - - -
6M - - - -
YTD - - - -
1Y - - - -
2Y - - - -
3Y - - - -
4Y - - - -
5Y - - - -
8Y - - - -
10Y - - - -
Since launch - - - -
1y - - - -
2y - - - -
3y - - - -
4 ans - - - -
5y - - - -
8 ans - - - -
10y - - - -
Since launch - - - -

Risk table

End date

Risk table Fund volatility Benchmark volatility Tracking error Information ratio Sharpe ratio Beta Alpha
1M - - - - - - -
QTD - - - - - - -
3M - - - - - - -
6M - - - - - - -
YTD - - - - - - -
1Y - - - - - - -
3Y - - - - - - -
5Y - - - - - - -
8Y - - - - - - -
10Y - - - - - - -
Since launch - - - - - - -

Price table

Start date

End date

Price Date Portfolio AUM
- - -

NAV

First NAV date 05/09/05

Administration

Distribution country

Distribution countries
Austria
Belgium
Denmark
Finland
France
Germany
Italy
Luxembourg
Netherlands
Norway
Spain
Sweden
Switzerland
United Kingdom

Fees

Ongoing Charges 0.86%

Fund facts

Currency EUR
Start date 01/01/99
Asset class FIXED INCOME
RI fund False
Legal authority Commission de Surveillance du Secteur Financier

Portfolio management

Fund Manager Johann PLE
Co-manager Sunjay MULOT
Investment team MT Active FI Paris - Credit & Aggregate

Structure

Investment area Euro
Legal form SICAV

Subscription and redemption

The subscription, conversion or redemption orders must be received by the Registrar and Transfer Agent on any Valuation Day no later than 3 p.m. Luxembourg time. Orders will be processed at the Net Asset Value applicable to such Valuation Day. The investor's attention is drawn to the existence of potential additional processing time due to the possible involvement of intermediaries such as Financial Advisers or distributors.The Net Asset Value of this Sub-Fund is calculated on a daily basis.

Literature