The FSA Spy market buzz – 20 December 2024
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HEAD-TO-HEAD: Axa vs Pimco
FSA compares two global high yield bond products: The Axa World Funds Global High Yield Bond Fund and the Pimco GIS Global High Yield Bond Fund.
Conclusion
The Axa fund has a five-star Morningstar rating and an analyst rating of Bronze, while the Pimco fund carries four-stars and a (higher) Silver analyst rating.
Morningstar’s star rating looks at historical risk-adjusted performance and the analyst rating is based on forward-looking analysis.=
Dobrescu did not say which fund she prefers, but instead pointed to the analyst ratings.
“They are good funds, but the Pimco fund had a higher rating because we are more confident in its potential to outperform in the long-term.”
Dobrescu highlighted the operation of the Pimco fund given the size of its resources.
“It’s a lot more diversified and they have invested a lot in their resources. Whereas in Axa, it is a smaller team and there has been some turnover over the past couple of years, which we are monitoring.”
Another factor is Axa’s higher price, she added.
That said, Dobrescu said that the Axa fund may be more appealing to investors who are focused on yield, given its higher exposure to CCC bonds.
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