Since launch in 2015 with the objective of being an “all-terrain” fund capable of maximizing returns while navigating different market cycles, the AXA WF Euro Credit Total Return fund has benefited from a positive momentum in the bond market since 2022 and has raised over 4 billion euros in assets under management, thereby reinforcing its position among the most sought-after flexible bond strategies in the eurozone.
Through rigorous credit research, thoughtful sector allocation, and a selection of high-conviction securities and positions, the AXA WF Euro Credit Total Return fund can attract investors looking for a strategy that can quickly adapt to interest rate risks while benefiting from a diversified exposure to euro credit beyond traditional bond indices.
10 years since its launch, the AXA WF Euro Credit Total Return fund now joins the small circle of euro credit funds with this amount of assets under management. This rise reflects the growing interest of institutional investors as well as private clients for distinct solutions able to adapt to an ever-changing market conditions.
Commenting on the acceleration of the fund’s asset growth, Benoit de Laval, senior portfolio manager at AXA IM – part of BNP Paribas Group, stated: “In times of geopolitical uncertainty, volatility becomes our constant companion. Yet, it is within this very turbulence that we may find opportunities and performance.”
Key risks
Risk of capital loss: Except where the Prospectus explicitly references the existence of a capital guarantee at a given date, and subject to the terms thereof, no guarantee is made or supplied to investors with respect to the restitution of their initial or subsequent investments in a Sub-Fund. Loss of capital may be due to direct exposure, counterparty exposure or indirect exposure (e.g. exposure to underlying assets through the use of derivative instruments, securities lending and borrowing or repurchase agreement).
Counterparty risk: Risk of bankruptcy, insolvency, or payment or delivery failure of any of the Sub-Fund’s counterparties, leading to a payment.
Liquidity risk: Risk of low liquidity level in certain market conditions that might lead the sub-fund to face difficulties valuing, purchasing or selling all/part of its assets and resulting in potential impact.
Credit risk: Risk that issuers of debt securities held in the Sub-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.
Risk related to investments in high yield instruments: The Fund may be exposed to a risk related to investments in high yield financial instruments. These instruments present higher default risks than those of the investment grade category. In case of default, the value of these instruments may decrease significantly, which would affect the Net Asset Value of the Fund.The use of such strategies may also involve leverage, which may increase the effect of market movements on the Sub-Fund and may result in significant risk of losses.
Risk related to investments in high yield instruments: The Fund may be exposed to a risk related to investments in high yield financial instruments. These instruments present higher default risks than those of the investment grade category. In case of default, the value of these instruments may decrease significantl, which could affect the Net Asset Value of the Fund.
Sovereign debt risk: The Sub-Funds may invest in sovereign debt. Investment in debt obligations such as sovereign debt, issued or guaranteed by such governments or governmental entities involves a higher degree of risk. The governmental entity that controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in accordance with the terms of such debt. The value of investments of the Sub-Funds may be adversely affected.
The list above of risk factors is not exhaustive. Please refer to the prospectus for full product details and complete information on the risks.
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