Allianz Global Investors
Details
> Home
> Fund types
> bond fund
> Fund search

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:

A new buy included a secondary market purchase within energy. A sell included an energy issuer that was exhibiting weaker operating performance. There are still three primary considerations investors should be focused on: first, the default forecast; second, the Fed, US economy and dollar; and third, relative value. The default forecast is expected to increase slightly, and it should remain at a low percentage level for 2016. Despite stress in select industries of the market, balance sheets, leverage ratios and interest coverage ratios continue to support an investment in the asset class.


Outlook:

The Fed is expected to take a cautious approach toward monetary-policy adjustments as a stronger US economy has been offset by continued weakness in several core areas of the global economy. Dovish commentary from Janet Yellen and a downwardly revised interest-rate-hike trajectory confirm this notion. Correspondingly, the dollar has been weakening and should provide a sales tailwind for American exporters. Outside of the US, global monetary policy continues to be overwhelmingly accommodative, with policymakers using aggressive stimulus measures in Europe and in regions throughout Asia. Until the Fed either moves more aggressively or is well into the tightening cycle, it should not be expected that monetary policy would be a driver of an extended sell-off and spread-widening in high yield. Given the extreme volatility levels that have recently been present in the marketplace, the short-term forecast for the high-yield market is challenging. The occurrence of a default follows the pricing in of that event. The current spread of approximately 620 basis points and a par-weighted average market price of $93.6 reflect a market that is pricing in a higher-than-likely realized default rate. Separately, looking at past performance following a negative year in the high-yield market, the return for the asset class has been well above coupon. The only exception to this pattern came at the end of the tech bubble in 2000. Among fixed-income alternatives, high-yield bonds should return to their historical norm as a contributor from both a diversification and a relative-performance perspective. Interest rates should have a negligible impact on the high-yield market given the relative average spread and dollar market price today. The Fed path, earnings trends, commodity prices and global growth will all influence the outlook.


Overview

Fund price as of 5/24/16

Issue price: 8.01

Redemption price: 7.78

Type of fund: bond fund

Risk and Reward Indicator*: 4

Currency: HKD

Redemption price (previous day): 7.78

Deviation in %: 0.00

Interim profit: -

Equity gains EStG-investors in %: -

Equity gains KStG-investors in %: -

Annual high (5/3/16): 7.84

Annual low (2/16/16): 7.20


* 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.


Ratings

Morningstar-Rating: * (1)

Feri-Rating: E


Performance data in %

Date: 4/30/16

1 year: -7.89

3 years: -4.47

3 years annualised: -1.51

5 years: -

5 years annualised: -

10 years: -

10 years annualised: -

Since inception: 14.13

Since inception annualised: 2.85


Volatility in %

Date: 4/30/16

3 years: 6.43

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


Opportunities:


+ 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


Risks:


+ 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