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AXA WF Global Optimal Income
Last NAV 129.6700 EUR as of 26/03/20
Why this fund
Finding steady growth in today’s market remains challenging for investors everywhere. Designed to provide exposure to global markets while mitigating their ups and downs, AXA WF Global Optimal Income is a total return multi-asset fund which can invest across all major asset classes with a flexible 0-100% equity and fixed income investments allocation.1
AXA WF Global Optimal Income aims to capture global growth while managing the unknowns, with conviction-led stock-picking.
Reasons to invest:
Aims to capture global growth through strong long-term convictions through our combination of top-down asset class experts and bottom-up security selection.
Looks to capture a broad range of market opportunities and adapt to shifting market environments though a 0-100% potential allocation to equities.1
Operate a three-tiered approach to risk mitigation to help investors manage the unknowns inherent in today’s financial system.
“AXA WF Global Optimal Income aims to give investors a flexible allocation to global stocks and bonds, while mitigating risk and benefiting from diversification across all asset classes”
Serge Pizem, Portfolio Manager
1 Percentage of portfolio’s net assets for illustrative purposes only. For more details refer to the appropriate KIID or Prospectus.
2 © Morningstar as at end of June 2019. The references to league tables and awards are not an indicator of future performance or places in league tables and awards
3 Our ESG analysis is integrated across all our investment platforms which allows our investment teams to take account of ESG risks and opportunities when making investment decisions that are tailored to clients’ objectives. Please see AXA IM's website for more details.
All investment involves risk. AXA WF Global Optimal Income 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. Risks associated with the Fund include credit risk, counterparty risk, risks associated with techniques such as derivatives, the use of leverage which may increase the effect of market movements on the Fund, geopolitical risk, and risk linked to investments in hedge funds. Investors are advised to refer to the current KIID and prospectus available on our website for a detailed description of risk considerations.
Counterparty Risk: Risk of bankruptcy, insolvency, or payment or delivery failure of any of the Fund's counterparties, leading to a payment or delivery default.
Risk linked to investments in hedge funds: a limited part of the assets of the concerned Sub-Fund (maximum 10%) is exposed to funds pursuing alternative strategies. Investments in alternative funds imply certain specific risks linked, for example, to the valuation of the assets of such funds and to their poor liquidity.
Geopolitical Risk: investments in securities issued or listed in different countries may imply the application of different standards and regulations. Investments may be affected by movements of foreign exchange rates, changes in laws or restrictions applicable to such investments, changes in exchange control regulations or price volatility.
Liquidity Risk: risk of low liquidity level in certain market conditions that might lead the Fund to face difficulties valuing, purchasing or selling all/part of its assets and resulting in potential impact on its net asset value.
Credit Risk: Risk that issuers of debt securities held in the Fund may default on their obligations or have their credit rating downgraded, resulting in a decrease in the Net Asset Value.
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 Fund and may result in significant risk of losses.
Not for Retail distribution: This document is intended exclusively for Professional, Institutional, Qualified or Wholesale Clients / Investors only, as defined by applicable local laws and regulation. Circulation must be restricted accordingly. This promotional communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision. Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision. Before making an investment, investors should read the relevant Prospectus and the Key Investor Information Document / scheme documents, which provide full product details including investment charges and risks. The information contained herein is not a substitute for those documents or for professional external advice. The products or strategies discussed in this document may not be registered nor available in your jurisdiction. Please check the countries of registration with the asset manager, or on the web site https://www.axa-im.com/en/registration-map, where a fund registration map is available. In particular units of the funds may not be offered, sold or delivered to U.S. Persons within the meaning of Regulation S of the U.S. Securities Act of 1933. The tax treatment relating to the holding, acquisition or disposal of shares or units in the fund depends on each investor’s tax status or treatment and may be subject to change. Any potential investor is strongly encouraged to seek advice from its own tax advisors. AXA WF Global Optimal Income is a sub-fund of AXA World Funds. AXA WORLD FUNDS ‘s registered office is 49, avenue J.F Kennedy L-1885 Luxembourg. The Company is registered under the number B. 63.116 at the “Registre de Commerce et des Sociétés” The Company is a Luxembourg SICAV UCITS IV approved by the CSSF and managed by AXA Funds Management, a société anonyme organized under the laws of Luxembourg with the Luxembourg Register Number B 32 223RC, and whose registered office is located at 49, Avenue J.F. Kennedy L-1885 Luxembourg. Past performance is not a guide to current or future performance, and any performance or return data displayed does not take into account commissions and costs incurred when issuing or redeeming units. References to league tables and awards are not an indicator of future performance or places in league tables or awards and should not be construed as an endorsement of any AXA IM company or their products or services. Please refer to the websites of the sponsors/issuers for information regarding the criteria on which the awards/ratings are based. The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested. Exchange-rate fluctuations may also affect the value of their investment. Due to this and the initial charge that is usually made, an investment is not usually suitable as a short term holding. © (2019) Morningstar. All Rights Reserved. The information, data, analyses and opinions (“Information”) contained herein (1) include the propriety information of Morningstar; (2) may not be copied or redistributed; (3) do not constitute investment advice; (4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and (6) may be drawn from fund data published on various dates. Morningstar is not responsible for any trading decisions, damages or other losses related to the Information or its use. Please verify all of the Information before using it and don’t make any investment decision except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up. Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 7 Newgate Street, London EC1A 7NX.
The Sub-Fund seeks to achieve a mix of stable income and capital growth measured in Euro by investing in a mix of equities and fixed income securities issued by governments and companies primarily domiciled or listed in OECD countries, over a long term period.
Synthetic Risk & Reward Information scale
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?
Fund manager comment : 31/01/20
New year, new issues. The epidemic currently plaguing China could have a significant impact on Chinese activity. Donald Trump’s policy is and will remain unpredictable as exemplified by the repeated trade threats made against certain European countries. Eurozone growth figures for Q4 surprised on the downside, whereas the European Union and the UK said goodbye to each either prior to the official Brexit date. In the US, Q4 activity remained stable at +2.1% quarter-on-quarter annualised. During January, the flash PMI for the manufacturing sector fell to 51.7, whereas that in services climbed to 53.2. The United States has also finalised the so-called Phase 1 of the trade agreement with the Chinese authorities. Under the terms of this agreement, China will have to buy more US products, whilst the US has pledged not to increase import tariffs any further. That said, no major progress was made in terms of intellectual property rights and technology transfers. Donald Trump triggered a targeted assassination in Iraq, of Qassem Soleimani, a leading dignitary and influential person in the Iranian regime, reviving fears of renewed tensions in the region, even though these had calmed somewhat at end-January. In the eurozone, growth in Q4 stood at 0.1% quarter-on-quarter. The German manufacturing industry has continued its recovery with the Flash Manufacturing PMI rebounding to 45.2. While in France, the service sector has suffered as a result of the strikes, also reflected in the Flash PMI, which fell to 51.7. Household confidence has held steady despite a further drop in the unemployment rate, which now stands at 7.4%, its lowest level since May 2008. News was not so rosy on the credit front. The results of the Bank Lending Survey published by the ECB showed that forecasts for company loan requests are at their lowest since 2013 and credit data signals a slowdown in the pace of loans to non-financial companies (+3.2%). During its last monetary policy meeting, no changes were made and the details of the strategic review remain vague. In the UK, the divorce with the European Union was made official on 31 January. An 11-month transition period has started. During it, new trade agreements will be negotiated. Activity was slower during the last quarter of the year, affected by the decline in industrial production and significant inventory moves in October. Faced with this air pocket, some members of the Bank of England communicated their aim to reduce rates in a preventive move, but surprisingly, the institution finally decided to leave its rates unchanged. In China, economic activity in Q4 was higher than expected with GDP up 6% year-on-year. The services sector grew by +6.9% and the industrial sector, up +5.7%, held up well. Data from the latest survey point to a slight rebound in manufacturing activity, which has been called into question following the outbreak of the coronavirus (2019-nCoV) epidemic. However, it is difficult to quantify exactly its impact on business, though consumption and production will surely be sluggish in several regions. In Japan, Q4 growth is set to have plunged following the rise in VAT in October and the spate of extreme weather conditions. A slight rebound in activity was expected in Q1 but the coronavirus epidemic, combined with the extension of holiday periods during the Chinese New Year are bound to impact Japanese economic activity. Uncertainty concerning the coronavirus epidemic and its impact on global growth took a toll on equities markets in January. In the US, after a good start to the year, the S&P 500 shed all of its gains and ended 0.2% lower. Other markets were more harshly affected. The Euro Stoxx 50 was down 2.8% and the British FTSE 100 plummeted 3.4% in the run-up to Brexit. In Asia, the Japanese Topix lost 2.1% and the Chinese markets corrected more harshly: -6.7% for the Hong Kong Hang Seng index whereas the Shanghai index only lost 2.4% given the closure of the stock market for the New Year holidays. Emerging markets (MSCI EM Total Return) also incurred sharp losses, falling 4.9% in USD and -3.4% in EUR. Sovereign bonds made the most of risk aversion and accommodative monetary policies. 10-year US yields plummeted 41 basis points to +1.51%, while German Bund yields were down 25bp to -0.43% and the 10-year French OAT fell 29bp to -0.18%. Bond yields in peripheral countries joined them with 10-year yields plummeting to +0.23% (-24bp) in Spain and +0.93% (-48bp) in Italy. The same trend was seen in the UK where Gilts ended at +0.52% (-30bp) and 10-year Japanese rates also fell to -0.07% (-6bp). On credit markets, spreads widened slightly in the investment grade category but deteriorated more sharply in the high-yield segment. On the foreign exchange market, the US dollar notched up slightly against the euro to 1.11 (+1.1%), as did the yen (+1.3%), sterling (+0.7%), and the Swiss franc (+1.42%). In contrast, currencies related to commodities were in sharp decline: -3.7% for the Australian dollar and -3.5% for the Norwegian krona. In commodities markets, the Bloomberg Commodity index excluding farming and livestock was down 8.1% in reaction to uncertainty in China and hence on global growth. Oil prices plummeted 15.2% to $56/b for Brent crude. Industrial metals also suffered from the prospect of a decline in Chinese demand, as shown by the 10% fall in copper prices, whereas gold made the most of its refuge stock status, gaining 4%. Portfolio life and allocation views: In terms of allocation, our exposure to equities markets decreased to around 50% at the end of the month. Indeed, within the equities segment, we reduced our exposure by 2% to emerging equities, by 5% to US equities in view of the coronavirus outbreak and the US Democratic primaries. Upstream we bought optional protection on European markets for around 9% of the fund’s assets. On the bond market, we are maintaining relatively low sensitivity to interest rates, close to 0.5 years at the portfolio level, with primary exposure to bonds on the credit market to take advantage of a yield premium compared with the sovereign bonds market. Over the month, the fund posted a net performance of -0.96%. The current market sentiment is quite optimistic. Unquestionably, a number of areas of concern remain, in particular with regard to the coronavirus, the U.S. presidential elections, trade, low capital spending, high corporate debt and geopolitical risks. But the general trend seems to be tilting towards risky assets. Indeed, it is striking to note that the coronavirus outbreak, which has cast a doubt over the global growth outlook, led to a brief aversion to risk assets, but equity markets recovered very quickly. Similarly, on the night that Iran launched its ballistic missiles at a US base in Iraq, S&P 500 futures briefly lost 2% but quickly rallied to close the session higher. Under normal circumstances, these situations would have triggered a stronger reaction in the markets due to the fact that long positions in U.S. equity futures are now close to historical highs, a sign of tight speculative positioning. So why have the markets been proving to be so resilient? In our view, it is simply because for the time being positive factors are winning out. Monetary stimulus mechanisms continue to be shored up and financial conditions are becoming ever more accommodative as central banks continue to cut interest rates, most recently in China to cushion the effects of the coronavirus outbreak on the economy, and China has announced significant injections of liquidity. As a result, short-term rates, which are 50 bps lower than a year ago, continue to decline globally. The monetary stimulus is driving up asset prices, particularly for equities and real estate. For example, U.S. housing starts in December exceeded the expectations of all economists and reached their highest level since December 2006. Paradoxically, the rise in asset prices could become self-sustaining, since the increase in household net worth is likely to support consumption and, therefore, GDP growth in 2020 in a context where business results remain encouraging. All this against a backdrop where we can already hope for a recovery in the manufacturing cycle, as suggested by the rebound in business survey data. Consequently, the overall PMI indices for new orders in the manufacturing sector for January have returned to above 50, the highest since December 2018. According to historical statistics, the S&P index is likely to continue its rise until a recession is in sight. However, this is still not in the offing just yet.
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.
|Performance indicator||Start date||End date|
|Performance table||Net performance||Performance indicator||Start date||End date|
|Risk table||Fund volatility||Benchmark volatility||Tracking error||Information ratio||Sharpe ratio||Beta||Alpha|
|Legal authority||Commission de Surveillance du Secteur Financier|
|Fund Manager||Serge PIZEM|
|Investment team||MT Absolute & Total Return|
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 the following 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.
Fund Factsheet B2B 02/2020
Shareholder Letters 18/09/2017
Articles of association 09/11/2015
Management Regulations 17/11/2016
Annual Report 31/12/2018
Fund Manager Comment 01/2020
Semi-Annual Report 30/06/2019
Subscription Form Institutional 02/2019
Subscription Form - Retail 02/2019
Operating Memorandum 27/02/2020