HEAD-TO-HEAD: Axa versus Invesco
By Francis Nikolai Acosta, 21 Jun 19
FSA compares two UK corporate bond funds: the Axa Sterling Short Duration Bond Fund and the Invesco UK Investment Grade Bond Fund.
Darius McDermott, Chelsea Financial Services
UK stocks have largely lagged global markets since British voters chose to leave the European Union in a referendum on 23 June 2016.
The FTSE All Shares Index returned 15.37% on a three-year cumulative basis, which compares to the MSCI AC World Index return of 39.55%, according to FE data.
Also underperforming is the UK’s fixed income market. The Bloomberg Barclays Sterling Aggregate Index has returned -3.85% during the period, versus the Global Aggregate Index’ 4.32%.
However, over the past one year to April 2019, UK fixed income funds had net inflows of around $4.7bn, according to data from Morningstar Direct. During the same period, investors withdrew around $8.5bn from UK equity funds.
Against this backdrop, FSA asked Darius McDermott, managing director of Chelsea Financial Services and Fund Calibre, to compare two UK investment grade products: the Axa Sterling Short Duration Fund and the Invesco UK Investment Grade fund.
Nicolas Trindade, Phil Roantree
Luke Greenwood, Lyndon Man
|Three-year cumulative return*|
|Three-year annualised return**|
|Three-year annualised alpha**|
|Three-year annualised volatility**|
|Morningstar analyst rating|
|Morningstar star rating|
|FE Crown fund rating|
Source: FE Analytics, Morningstar
*17 June 2016 – 16 June 2019
**18 June 2016 – 14 June 2019