Experience the new Fund Centre
AXA WF Global Optimal Income
Last NAV 128.5000 EUR as of 02/04/20
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 : 28/02/20
February was affected by the spreading of the COVID-19 epidemic; despite the confinement measures implemented in China, new outbreaks were identified in South Korea, Iran and Italy, stoking fears of a worldwide epidemic and a global recession. In the US, the number of people infected by the virus remains low for the moment. The partial halt to activity in China is beginning to be reflected in surveys with flash PMIs for February down in the manufacturing sector (50.8) and in services (49.4). Jay Powell confirmed that the Fed “would use all the tools available to support the economy”. Finally, in the Democratic Party primaries, it is still difficult to clearly identify the winning candidate; Super Tuesday when 14 states are set to vote should be decisive. The eurozone did not escape the coronavirus contagion, with Italy in the firing line. The latest economic surveys mask an increasingly worrying economic sluggishness. Indeed, the German PMI jumped to a peak level for 13 months following an extension in delivery times due to the partial halt to activity in China. Meanwhile new export orders were at their lowest for three months. At the same time, EU member states met to adopt the 2021-2027 budget but failed to reach an agreement to fill the gap left by the UK contribution (€60-75 bn). On a national level, the Italian political situation remains very volatile while Germany’s has become more complex. Management of the coronavirus outbreak has added further pressure to already fragile governments, especially in Italy. In the UK, Q4 GDP continued to suffer from the plunge in manufacturing activity as well as the lowest growth in services for almost a decade (+0.1%). The latest surveys seem to reflect a decline in uncertainty relative to Brexit. The government’s pledge to end the transition phase with the EU by the end of this year seems very unlikely and therefore leaves the risk of a hard Brexit hanging. At its latest meeting, the Bank of England made no change to its key rate in view of a possible rebound in business. In China, news in February clearly concerned the spreading of the coronavirus. The number of cases exploded, rising from 10,000 at the start of the month to around 80,000 now. While the number of new cases is falling each day, activity nevertheless remains affected and the return to a normal situation is unlikely for several weeks. The quarantine of entire towns has taken a harsh toll on both demand and production. The government announced extensive measures to try and stimulate the economy: early public orders, tax cuts, state subsidies. The PBOC also coordinated its action by reducing its bond reserve rate and injecting massive liquidity to relieve the financial system. In Japan, Q4 activity was down 6.3% on a quarter-on-quarter annualised basis. Since the root of the plunge was known and temporary (rise in VAT and typhoon), we should have seen a rebound in Q1 activity. However, the recovery is unlikely to materialise given the accumulation of difficulties since then, and the risk of a technical recession (two negative quarters in a row) cannot be ruled out. Domestic demand is only gradually recovering whereas exports are suffering from lower international demand. Finally, the impact of Covid-19 is extremely high since Japan depends closely on Chinese activity. After a good start to the month, the stock markets corrected during the last week of February as the Covid-19 outbreak rapidly spread to the whole world, heightening fears of a global recession. The S&P 500 was down 8.4% in the US, while the Euro Stoxx 50 was down 8.6%, with an equivalent downturn for the French CAC40 and the German DAX at -8.4%. Peripheral markets resisted slightly better with the Spanish IBEX at -6.9% and the Italian MIB at -5.4%. In the United Kingdom, the FTSE 100 was down a sharper 9.7%. Asian markets also reacted negatively, with the Japanese Topix and Nikkei indices shedding 10.3% and 8.9% respectively. The Chinese markets showed signs of resilience: the Shanghai stock market was down 3.2%, Hong Kong was quite stable at -0.7%. Emerging markets (MSCI EM Total Return Index) were also down 5.3% in USD and 4.4% in EUR. Government bonds benefited from the flight to security and accommodative monetary policies by the main central banks. The 10-year US yield plummeted to 1.15 (-36 bp), while the 10-year German Bund was down to 0.61% (-17 bp), and the 10-year French OAT fell to -0.29% (-11 bp). In contrast, bond yields in peripheral countries diverged: +5 bp to 0.28% for 10-year Spanish rates and +17 bp to 1.1% for the 10-year Italian rate. Finally, the fall in 10-year yields was more modest for the UK (-9 bp to 0.44%) and Japan (-9 bp to -0.15%). On the credit market, spreads widened in the investment grade segment, and even more so in the high yield segment both in the United States and Europe. On the forex market, the US dollar gained slightly, as witnessed by the dollar index, which was up +0.8%. The euro was down 0.7% to 1.10 while the British pound was down 3.3% to 1.28, whereas the Japanese yen remained stable at 108 against the USD. In commodities markets, the Bloomberg Commodity index excluding farming and livestock was down 6.7% in reaction to uncertainty in global demand. Oil prices plummeted 12% to $49.67/barrel for Brent and 13.46% to $45 for the WTI. Industrial metals suffered less (copper -1%) while gold remained stable at $1,584/ounce benefiting from its refuge stock status. Positioning and performance: The uncertainty linked to the COVID-19 outbreak in China had already impacted our positioning in January. Given the flow of negative news, we reduced our exposure to equities. On the one hand, we reduced exposure to the emerging markets as we anticipated that this region will be most affected by current events. On the other hand, we strengthened our risk mitigation strategy by implementing a put option on the Euro Stoxx 50 (maturing in April 2020), to protect approximately 10% of our portfolios. The option delta fully plays its part cushioning the shock. We decided to increase the risk in our portfolios as we noted that the number of new cases in China slowed at the start of February, the economy was buoyed by the monetary policy implemented by the Central Bank designed to relaunch the economy and that macroeconomic indicators remained positive. However, due to the sudden emergence of new epicentres in Italy, South Korea and Iran, and due to the significant downturn on the markets, we reduced our equity exposure. We initially reduced our exposure in European equities by 1%. We subsequently reduced exposure in European equities by a further 2%, followed by a 1% reduction of exposure in US equities, i.e. a total reduction of 4%. We also took out a relatively stable position by purchasing at 2% on the MSCI Emerging Markets index and selling European equities for the same amount, as the economy is picking up progressively in China whereas the outlook for Europe predicts a slowdown over the coming months. Moreover, as part of an additional hedging strategy, we took out long positions of 5% CHF/USD and 5% JPY/USD respectively. The Swiss franc (CHF) and the yen (JPY) are both considered as safe currencies during periods of market tension. In terms of allocation, our exposure to equities markets was around 52% at the end of the month. On the bond market, we are maintaining relatively low sensitivity to interest rates, 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 -4.40%.
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