AXA Sterling Corporate Bond Z NET Acc NAV

IMA Sector:

Corporate Bond

ISIN:

GB00B0T9V714

Fund Type:

OEIC

135.10p
   
  • PEP:
  • ISA:
  • CAT Std:
  • Date: 12-Oct-2018
  • Change: -0.100p
  • Change %: -0.07%
  • Currency: GBP
  • YTD change: 135.10p
  • YTD %: n/a

Fund Objective

To generate returns by gaining exposure generally to the sterling denominated, corporate bond markets in the UK and overseas.

Future Expectations

The Fund returned a net cumulative performance of -10.16% in September, underperforming the benchmark which returned -4.58%. Uncertainty prevailed as the credit crunch worsened, prompting the collapse of US investment bank, Lehman Brothers and large retail bank, Washington Mutual. The Federal Reserve was forced to step in to save mortgage providers Freddie Mac and Fannie Mae, as well as insurer, AIG from similar fates.Meanwhile, Merrill Lynch and Wachovia were sold at knock-down prices to similarly avoid insolvency. The US government announced a $700bn rescue fund to help support the market. The UK credit market performed poorly in the third quarter, influenced by US market events. In particular, HBOS suffered from extreme selling pressure. Such was the extent of its share price collapse that it was forced into a government-brokered rescue-sale to Lloyds TSB.Elsewhere, Bradford & Bingley as nationalised to prevent its bankruptcy, the government taking control of its £50bn in mortgages and loans. The underperformance of the Fund compared to the benchmark was predominantly explained by the exposure to US financial names and in particular the exposure to AIG, Washington Mutual, Lehman Brothers and GE. It was also explained by the weakness in the UK financial sector and the exposure to Barclays and Cattles.In terms of macro position, the Fund benefited from the interest rate curve steepening strategy implemented late August. The Fund has been trying to reduce its exposure to financials since the middle of August, but it has been virtually impossible to sell in this illiquid environment. The new manager has been actively seeking to reduce the risks posed by the financial sector, and has managed to make some disposals despite the poor conditions.The intention is to re-structure the Fund as soon as possible with the aim of providing it with greater capital protection, lower volatility and a more broadly diversified base of corporate assets.

Fund Details

Latest Price 135.10p IMA Sector Corporate Bond
Currency British Pound Launch Date 30/01/2004
Fund Size n/a Fund Manager Neil Sutherland
ISIN GB00B0T9V714 Dividend 0.00p

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Price Info

Date 12-Oct-2018
NAV 135.10p
Currency GBP
Change -0.100p
% -0.07%
YTD change 135.10p
YTD % n/a

Fund Facts

Fund Inception 30/01/2004
Fund Manager Neil Sutherland
TER -
Minimum Investment
Initial £100000
Additional n/a
Savings £50
Charges
Initial n/a
Annual Mang't 0.50%
Exit n/a

Risks

Name %
Standard deviation 0.00
Sharpe ratio 0.08

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