AXA World Funds - US High Yield Bonds A Hedged EUR (XRUI)

Overview

AXA World Funds - US High Yield Bonds A Hedged EUR is an open-ended investment fund structured as a SICAV and managed under UCITS regulation in Luxembourg. The fund's principal objective is to deliver high income and capital growth over the long term by predominantly investing in a diversified portfolio of US high-yield corporate bonds, often referred to as 'junk bonds.' These bonds are typically rated below investment grade and, therefore, offer higher coupon rates that reflect increased credit and default risk.

The fund employs active management to address credit risk through meticulous bottom-up credit selection coupled with macroeconomic analysis. The aim is to compound current income while minimizing potential principal loss. By spanning multiple sectors—such as services, capital goods, energy, healthcare, telecommunications, retail, and financial services—the fund manages to maintain diversity to cushion against adverse market movements. Additionally, it typically focuses on maturity structures that are below ten years to mitigate interest rate sensitivity.

This fund features a EUR hedged share class designed to cushion euro-based investors against the effects of currency fluctuations. With a strong focus on Environmental, Social, and Governance (ESG) criteria, a significant portion of the fund's assets are evaluated against these metrics, and the fund provides CO₂ intensity statistics to enhance transparency. As a specialist vehicle concentrating on US high-yield debt, it caters to investors looking for yield enhancement and diversification beyond traditional fixed-income options.

Products and Services

• High-Yield Corporate Bonds:

  The fund primarily invests in US high-yield corporate bonds, which are securities rated below investment grade. These bonds provide higher coupon rates, offering investors the potential for elevated income, albeit with increased risk.

• Diversified Investment Strategy:

  The fund adopts a diversified strategy, investing across multiple sectors such as energy, healthcare, telecommunications, and others. This diversification helps to spread risk and enhance potential returns.

• Active Credit Risk Management:

  Implementing a robust active management approach, the fund's management team engages in diligent bottom-up credit analysis and macroeconomic evaluations to select bonds and manage credit risk effectively.

• EUR Hedged Share Class:

  This share class is designed specifically for euro-based investors, minimizing the impact of currency fluctuations on investment performance and preserving capital in local currency terms.

• ESG Integration:

  A significant portion of the fund's portfolio is assessed for environmental, social, and governance criteria. This commitment enhances the transparency of the fund's investments and aligns with the growing trend toward responsible investing.

• CO₂ Intensity Metrics:

  The fund provides CO₂ intensity metrics to help investors understand the environmental impact of their investments, promoting informed decision-making in alignment with sustainability goals.

• Long-Term Growth Focus:

  With an emphasis on delivering long-term capital growth and high income, the fund's investment strategy is aimed at compounding returns for investors over an extended investment horizon.