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Allianz US High Yield - AM - HKD

ISIN: LU0648978533

Investment Objective:

The fund concentrates on high-yielding corporate bonds of companies that are domiciled in the U.S.A. Up to 20% of the fund's assets may be invested in securities that are denominated in currencies other than the US-dollar. The investment objective is long-term capital appreciation.

Fund manager:

Forsyth, Doug

Portfolio Highlights:

Buys included primary and secondary market purchases including an apparel company and a bank. Sells included issues that were called or exhibiting operational weakness including a coal miner. Relative value within the rating categories can be viewed as the composite of all the factors expected to affect the market. BB rated issuers are the least attractive grouping from a total-return standpoint, but market corrections create isolated opportunities. In terms of CCC rated issues, the low default rate and positive economic outlook mean that select pockets of opportunity can be found, but in other cases these issuers represent higher default risk. In aggregate, these BB and CCC rated groups should remain underweight . At the same time, B rated issuers seem attractive because of a combination of total return and lower risk profiles.


The performance of high-yield bonds will always trend back to the core element of high-yield investing: The high-yield asset class can be an alpha driver with lower volatility than equities, and can also be a diversification tool as an alternative to core fixed-income investing. The spreads or relative value of high-yield bonds will be driven by the perceived expectation of defaults. Any short-term variation in that perception should be short-lived unless the direction of the trend in defaults is realized. The default forecast is expected to remain low for 2015. Credit statistics support investment in the asset class. Balance sheets, leverage ratios and interest coverage ratios remain healthy for the overall market. The economic outlook remains consistent with a moderate growth forecast for the US. Separately, global monetary policy continues to be overwhelmingly accommodative, with policymakers using aggressive stimulus measures in Europe and regions throughout Asia. The Fed remains dependent on economic data which has showed continued strength. If the US economy is strong enough for Fed tightening, investors should have higher conviction that high-yield defaults will remain low. Notably, in the past 30 years, the US has not fallen into recession, nor have high-yield spreads moved substantially higher, without being preceded by an inverted yield curve. Yet the curve currently shows a spread of approximately 200 basis points between the 3-month Treasury bill and the 10-year Treasury note. Unless the Fed moves aggressively and is well into the tightening cycle, an extended sell-off and spread-widening in high yield would be unprecedented. Given the extreme volatility levels that have recently been present in the marketplace, the short-term forecast for the high-yield market is less clear. However, if the US economy avoids slipping into recession, the outlook for the performance of the high-yield market is considerably higher for 2016. Among fixed-income alternatives, high-yield bonds should be a contributor from both a diversification and a relative-performance perspective.


Fund price as of 11/25/15

Issue price: 8.33

Redemption price: 8.09

Type of fund: bond fund

Risk and Reward Indicator*: 3

Currency: HKD

Redemption price (previous day): 8.11

Deviation in %: -0.25

Interim profit: -

Equity gains EStG-investors in %: -

Equity gains KStG-investors in %: -

Annual high (3/3/15): 9.39

Annual low (11/23/15): 8.12

* For each fund a risk and reward indicator will be disclosed which will be calculated on the basis of the fund's volatility. The volatility describes how much the value of the fund went up and down in the past. Funds of categories 1 to 7 of the risk and reward profile have shown in the past a very low (category 1) up to a very high (category 7) volatility. The units of a fund of category 1 to 7 of the risk and reward profile might be subject to very low up to very high price fluctuations based on the historical volatilities observed.


Morningstar-Rating: * (1)

Feri-Rating: D

Performance data in %

Date: 10/31/15

1 year: -5.45

3 years: 3.83

3 years annualised: 1.26

5 years: -

5 years annualised: -

10 years: -

10 years annualised: -

Since inception: 16.84

Since inception annualised: 3.77

Volatility in %

Date: 10/31/15

3 years: 4.95

5 years: -

Basis of calculation for performance: Unit value (not including front-end loads); Distributions reinvested. Average annual performance is calculated by distributing the total performance of a period, taking into account the compound interest effect, evenly across each respective year.

Past performance is not a guide to future returns.

Source: IDS GmbH


+ Particular yield potential of high-yielding corporate bonds
+ Capital gains opportunities on declining market yields
+ Currency gains against investor currency possible in unhedged unit classes
+ Broad diversification across individual securities
+ Possible extra returns through single security analysis and active management


+ Bonds suffer price declines on rising interest rates
+ High-yielding corporate bonds entail above-average risk of volatility, illiquid markets and capital loss. The fund unit price may be subject to sharply increased volatility.
+ Currency losses against investor currency possible in unhedged unit classes
+ Limited participation in the potential of individual securities
+ No guarantee that single security analysis and active management will be successful