Posted inTop Trumps

Mutual Fund Top Trumps: Global High Yield Bonds – 18 January 2024

This week FSA presents a quick comparison of two global high yield bond: the AXA Global High Yield Bonds fund and the Franklin High Yield fund.
Source: FE Fundinfo. All relevant fund data converted to US dollars for comparative purposes. Performance, alpha and volatility are annualised over three years with data as reported at the end of last month. Information ratio (IR) aims to measure a portfolio manager’s consistent ability to generate excess returns relative to a benchmark. The higher the IR, the more consistent the manager is.

Based on the popular 80s card game, each week we select an asset class and use FE fundinfo data to compare two funds based on their three-year performance, assets under management, alpha, volatility, ongoing charges and information ratio to decide which is the Top Trump.

AXA Global High Yield Bonds fund

The fund’s investment objective is firstly to seek high income and secondarily capital growth by investing in high yield corporate debt securities over a long-term period.

Sector breakdown:

  1. Services (11.2%)
  2. Technology & Electronics (10.7%)
  3. Healthcare (10.1%)
  4. Basic Industry (8.3%)
  5. Media (8.2%)
  6. Capital Goods (7.8%)
  7. Leisure (7.1%)
  8. Energy (5.6%)
  9. Consumer Goods (5.6%)
  10. Telecommunications (4.8%)

Franklin High Yield fund

The fund aims to earn high income and, secondarily, to increase the value of its investments over the medium- to long-term by mainly investing in debt securities. It can also buy equities and government bonds. The investment team manage risk through credit analysis of securities issuers.

Sector breakdown:

  1. Energy (15.4%)
  2. Finance (10.5%)
  3. Healthcare (7.3%)
  4. Industrial (5.9%)
  5. Cable Satellite (5.8%)
  6. Utility (5.1%)
  7. Technology (5.0%)
  8. Gaming (4.9%)
  9. Building (4.7%)
  10. Others (32.9%)

Part of the Mark Allen Group.