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High Yield Expertise: Tap into more than 13 years of experience and knowledge


The High Yield universe presents investment opportunities across geographic regions, industry sectors and capital structures. High Yield credit can currently offer investors an attractive income yield in a low interest rate environment. Record high levels of issuance, indicating a strong refinancing trend, point to marked improvements in company fundamentals and significant investor demand.  At the same time, the yield spread differential over Investment Grade credit remains above the long-term average, suggesting there is still value from a relative standpoint in the asset class.
 

Why invest in High Yield bonds?

  • Relatively low correlation with other asset classes and other segments of the fixed income market, making them potentially good portfolio diversifiers.
  • Higher potential of income return (and at times, higher potential of capital appreciation) compared to Investment Grade or other segments of the Fixed Income market.

 

Why AXA IM for High Yield?

  • Experience. The team of 17* High Yield specialists, based in London, Paris and Greenwich (US), has extensive experience in managing high yield strategies, with €29 billion** under management in dedicated High Yield strategies.
  • Market knowledge. AXA IM has been managing Global and European High Yield strategies since 1999, and US High Yield strategies since 2001.
  • Rigor and discipline. Bottom-up, fundamental analysis is combined with a strong top-down component, with a strong focus on risk assessment.
  • Credit research. Active management and credit research has significantly reduced default risk: only 12 defaults within US and European High Yield funds since 2002***.

 

What are the risks of High Yield Investing?

  • Risk of invested capital loss
  • Credit risk
  • Liquidity risk
  • Interest rate risk
  • Investors are advised to refer to current prospectuses for detailed descriptions of risk considerations

 

 

 

 

 

 

 

 



* Source: AXA IM as at 30/07/16
** Source: AXA IM as at 30/09/16
***Source: AXA IM, BofA Merill Lynch as at 31/12/15. The period of comparison is from 2002 to 2015. Past performance is not a guide to future performance. High Yield bonds may be at a greater risk of default.