Axa IM defends funds with own money

Tell me this makes sense: "The objective of the two funds, both named US Libor Plus, was to pay a return of 50 basis points above the one month US Libor. However, the assets of both funds have fallen by about 21 per cent since the beginning of July. About 41 per cent of both funds, which between them have about $712m under management, were invested in subprime mortgages.