Head To Head

HEAD-TO-HEAD: Axa versus Invesco

FSA compares two UK corporate bond funds: the Axa Sterling Short Duration Bond Fund and the Invesco UK Investment Grade Bond Fund.

by Francis Nikolai Acosta 21 June 201931 August 2022

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Darius McDermott, Chelsea Financial Services

Introduction

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.

	Axa	Invesco
Size	£892.7m ($1.13bn)	£67.3m ($85.5m)
Inception	2010	2006
Manager	Nicolas Trindade, Phil Roantree	Luke Greenwood, Lyndon Man
Three-year cumulative return*	3.31%	10.99%
Three-year annualised return**	1.06%	3.59%
Three-year annualised alpha**	0.78	1.71
Three-year annualised volatility**	0.87	5.37
Morningstar analyst rating	Neutral	Neutral
Morningstar star rating	*	***
FE Crown fund rating	*	*
OCF	0.87%	0.84%

Source: FE Analytics, Morningstar

*17 June 2016 – 16 June 2019

**18 June 2016 – 14 June 2019

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