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AXA WF Global Optimal Income
Last NAV 154.7700 EUR as of 14/02/20
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 : 31/12/19
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 $160 bn worth of Chinese imports planned for 15 December. Surveys undertaken in the manufacturing sector showed increasing signs of stabilisation while employment showed the biggest monthly increase since January. Unemployment was therefore down 3.5%, its lowest level for five decades while wages were up +3.1% in November. The Federal Reserve made no change to its monetary policy during the last meeting of the year and stated that its policy would remain accommodative, barring a “ major shift” in activity. The House of Representatives voted in favour of impeachment but 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 completely reverses. In the eurozone, recent data has improved but remains weak. The composite PMI index notched up slightly in December to 50.9. PMIs in the services sector could show their lowest quarterly average since 2014, while 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 and threatened to impose a tariff of 100% on French products for a total value of $2.4 bn 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 with growth set to remain weak in 2020 at +1.1% and inflation at 1.1% (+0.1 pp). 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 phase should prevent WTO laws from applying directly by leaving the time to negotiate new trade agreements. 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. The government approved fresh budgetary stimulus of JPY 26,000 bn 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. In China, data improved slightly. Firstly, PMI manufacturing indices bounced back above 50. At the trade level, exports and imports increased. The recent reduction in the medium term loan facility rate enabled credit to underpin activity. On the budgetary front, the State Council recently announced its forecast for bond issues in 2020 worth $142 bn, in order to maintain investment momentum in infrastructure. In this backdrop, equity markets moved higher in December. In the US, the S&P 500 index was up +2.9% and in Europe, the Euro Stoxx 50 gained +1.1%. The Spanish market outperformed (IBEX +2.8%) whereas performances on the French (CAC 40 +1.3%) and Italian (MIB +1.1%) markets were close and the German market was in decline (DAX +0.1%). In the United Kingdom, the FTSE 100 gained +2.7%. Asian markets diverged: the Japanese Topix index was up +1.3%, while the Nikkei notched down -0.4%; Chinese markets posted sharp increases: +7% for the Hang Seng index in Hong Kong and +6.6% for the Shanghai Composite. The same trend was seen in the emerging markets, with the MSCI EM Total Return gaining 5.6% in euros and 7.4% in dollars. Bond markets were down slightly. 10-year US yields reached +1.92% (+14 bp) and those of the German Bund -0.19% (+18 bp). The same trend was seen for French OAT yields, which stood at +0.12% (+17 bp) and Italian BTPs at +1.41% (+18 bp), whereas Spanish BONOS yields were up a more modest 5 bp to +0.47%. The 10-year UK Gilt was also up at +0.82% (+13 bp) and yields on Japanese bonds climbed to -0.01%(+6 bp). On the credit market, spreads on IG bonds narrowed slightly and those on high yield bonds even more. In terms of currencies, the US dollar depreciated against the euro by -1.7%, like the Yen, which was down -0.9%. In contrast, all the other main currencies appreciated against the euro: GBP +0.8%, CHF +1.7%, CAD +0.5%, AUD +2%. On commodities markets, the Bloomberg index excluding agriculture and livestock was up 5.1% in dollar terms. Oil prices were up sharply (Brent +8.3%, WTI +10.7%) whereas industrial metals (copper +5.3%) and gold (+3.6%) grew more modestly. During December, we made the most of the market’s year-end gains, an objective that we managed to reach by betting on continuity. As such, we continued to increase our exposure to equities (60% at end-December), albeit to a lesser extent than in previous months. In particular, we continued to significantly increase our exposure to cyclicals for around 1%, by adding shares of groups specifically chosen for their solid business model and long-term growth prospects (such as Volvo and Compagnie Financière de Richemont). We also implemented a tactical strategy by investing in emerging markets equities (via futures) for 1% of the portfolio, since the segment ended the year in decline relative to global equities. Reduced fears of recession, the easing of geopolitical tensions, stable macro-economic data and capital inflows were the main reasons motivating this strategy. Indeed, after the considerable outflows seen during 2019, capital flows have picked up again recently testifying to renewed appetite for investors in the segment. Gross performance over the month was 1.53% to end at 4.54% over the quarter. Outlook for 2020: At end-2019, macro-economic indicators continued to show signs of improvement, bearing in mind that the manufacturing sector seems to have hit its low-point, thanks especially to the US-Chinese trade truce and the cut in the Fed’s key rates. Boris Johnson’s election victory automatically confirmed the adoption of the Brexit agreement and added to the good news. We also envisage the scenario of the Bank of England taking a more accommodative stance in order to help the economy. We are overweighting equities since we detect clear signs of a stabilisation in the economy. The year ended with two very advantageous events: the phase 1 trade agreement between the US and China, and the re-election of Boris Johnson. Our macro-economic indicators are stabilising in the eurozone, despite the sluggish manufacturing sector in Germany. We favour cyclical stocks whose valuations show a discount relative to growth stocks. The decline in trade tensions should underpin equities in emerging markets, so much so that we are overweighting the sector. On bond markets, although we have not increased our exposure, we are maintaining our positive stance on high-yield European bonds. Our positioning relative to investment grade credit remains neutral for the moment. In view of inflation expectations, which remain low, we are maintaining long exposure to inflation breakevens in the eurozone and the US.
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 01/2020
Shareholder Letters 18/09/2017
Articles of association 09/11/2015
Management Regulations 17/11/2016
Annual Report 31/12/2018
Fund Manager Comment 12/2019
Semi-Annual Report 30/06/2019
Subscription Form Institutional 02/2019
Subscription Form - Retail 02/2019
Operating Memorandum 07/10/2019