Mr Trindade is clear too that it pays in the current market to opt for an unconstrained, strategic approach rather than a benchmarked one. There are rich pickings in a global universe where a skilled manager can identify extra yield with relatively low additional risk, as well as creating a diversified portfolio.
This communication is for professional clients only and must not be relied upon by retail clients.
The views expressed do not constitute investment advice, do not necessarily represent the views of any company within the AXA Investment Managers group of companies and may be subject to change without notice. The capital of the Fund is not guaranteed. It is subject to the risk that a counterparty to a transaction does not meet its obligation which can adversely affect the value of the Fund. It is also subject to the risk that an issuer of bonds will default on its obligations to pay income or repay capital, resulting in a decrease in the fund’s value. The risk of default for high yield bonds may be greater. Derivatives can be more volatile than the underlying asset and may result in greater fluctuations to the Fund’s value.
In the case derivatives are not traded on an exchange they may be subject to additional counterparty and liquidity risk. Emerging markets or less developed countries may face more political, economic or structural challenges than developed countries. As a result, investments in such countries may cause greater fluctuations in the Fund’s value than investments in more developed countries.
Investments issued or traded on markets in different countries may involve the application of different standards and rules (including local tax policies and restrictions on investments and movement of currency), which may be subject to change and may impact the Fund’s value. Fluctuations in interest rates will change the value of bonds, impacting the value of the Fund. The valuation of bonds will also change according to market perceptions of future movements in interest rates. Some investments may trade infrequently and in small volumes. As a result the Fund manager may not be able to sell at a preferred time or volume or at a price close to the last quoted valuation. The Fund manager may be forced to sell a number of such investments as a result of a large redemption of shares. Depending on market conditions, this could lead to a significant drop in the Fund’s value and in extreme circumstances lead it to be unable to meet its redemptions.
