AXA WF Framlington American Growth

ISIN LU0361788507

Last NAV 409.4600 EUR as of 08/10/19

Why this fund

For clients looking to invest in the US market, we believe high quality growth stocks are well positioned to navigate unstable economic conditions.
The AXA Framlington American Growth Fund gives investors broad exposure to the world's largest stock market.

The team uses a rigorous bottom-up stock selection process that focuses on identifying good quality growth stocks that are innovative and have the potential to sustain significant growth in both revenues and earnings even in a decelerating macro-environment. The nature of the process tends to lead to a bias towards mid-cap stocks which tend to exhibit strongest growth rate at attractive valuation levels. The AXA Framlington American Growth Fund aims to achieve capital growth through investment principally in US large and medium capitalisation companies which, in the manager's opinion, show above average profitability, management quality and growth.

Reasons to invest:

  1. Consistent investment performance over various market cycles
  2. A focus on US mid-cap stocks with strong, unit-driven revenue growth
  3. A fundamental and unconstrained bottom-up investment approach, where stock selection is the primary source of added value
  4. Sector weightings are a function of bottom-up stock picking
  5. Rigorous investment process with strong sell discipline and risk monitoring


Lead manager, Stephen Kelly, is a top-ranked fund manager who has managed the Fund since 1997. He is supported by co-manager, Dan Harlow who has over 11 years' industry experience. The AXA Framlington American Growth Fund (OEIC) currently has more than £628m in assets under management (AUM), as at 31.05.2015.

Fund facts:

  • Launch Date: 31/12/1992
  • Sector: North America
  • Lead Fund Manager: Stephen Kelly
  • Deputy Fund Manager: Dan Harlow
  • Pay Date: 28 Feb
     

Overview

Investment objectives

The Sub-Fund seeks to achieve long-term capital growth measured in USD by investing mainly in companies domiciled or operating predominantly within the Americas, including the US, Canada and Mexico.

Risk

Synthetic Risk & Reward Information scale

1 2 3 4 5 SRRI Value 6 7

The risk category is calculated using historical performance data and may not be a reliable indicator of the Sub-Fund's future risk profile. The risk category shown is not guaranteed and may shift over time. The lowest category does not mean risk free.

Why is this Fund in this category?

The capital of the Sub-Fund is not guaranteed. The Sub-Fund is invested in financial markets and uses techniques and instruments which may be subject to sudden and significant variation, which may result in substantial gains or losses.

Additional risks

Credit Risk: Risk that issuers of debt securities held in the Sub-Fund may default on their obligations or have their credit rating downgraded, resulting in a decrease in the Net Asset Value. Counterparty Risk: Risk of bankruptcy, insolvency, or payment or delivery failure of any of the Sub-Fund's counterparties, leading to a payment or delivery default. Impact of any techniques such as derivatives: Certain management strategies involve specific risks, such as liquidity risk, credit risk, counterparty risk, legal risk, valuation risk, operational risk and risks related to the underlying assets.The use of such strategies may also involve leverage, which may increase the effect of market movements on the Sub-Fund and may result in significant risk of losses. Geopolitical Risk: investments in securities issued or listed in different countries may imply the application of different standards and regulations. Investments may be affected by movements of foreign exchange rates, changes in laws or restrictions applicable to such investments, changes in exchange control regulations or price volatility. Operational Risk: Risk that operational processes, including those related to the safekeeping of assets may fail, resulting in losses.

Investment horizon

This Sub-Fund may not be suitable for investors who plan to withdraw their contribution within 8 years.

Fund manager comment : 31/08/19

Main changes to the portfolio during August We initiated new positions in Five9, a leading provider of cloud-based software for call centres, and search and analytics platform Elastic. We exited Pioneer Natural Resources. Factors affecting performance during August The Fund underperformed its comparative benchmark, the Russell 1000 Growth Index, over the month. The underperformance was largely driven by poor performance from a couple of financial services holdings, namely Alliance Data Systems and Kemper. Current market influences and outlook Equity markets fell in August, with a further escalation in the trade dispute with China, as well as a market perception that the US Federal Reserve (Fed) was reluctant to cut rates over and above its announced 25 basis points. US President Donald Trump announced new tariffs on Chinese imports, although the implementation of some of these tariffs have been delayed. At month-end, markets took some respite in the news from the US that a new round of trade talks would take place with China. While such actions are undoubtedly unhelpful for many areas of the economy and will have a detrimental impact on the rate of growth, we do not believe they are sufficient to cause a recession. Forward-looking credit indicators continue to demonstrate credit availability is high, and with further rate cuts by the US Federal Reserve likely, the situation is unlikely to deteriorate sufficiently to result in negative growth. Declining interest rates in a non-recessionary environment have historically been positive for equity markets, and we expect the current slow, steady economic expansion to continue for several years. Growth stocks remain well positioned in such an environment.

Performance

Any performance shown is net of the ongoing charge for the share class selected with income reinvested . Past performance is not a guide to future performance. The value of investments can fall as well as rise and you may get back less than invested. The fund can use derivatives for investment purposes.  These instruments may cause periods of high volatility in the price of the shares of the fund.

Benchmark

Reference index Start date End date
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Performance table

End date

Performance table Net performance Reference index Start date End date
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1M - - - -
QTD - - - -
3M - - - -
6M - - - -
YTD - - - -
1Y - - - -
2Y - - - -
3Y - - - -
4Y - - - -
5Y - - - -
8Y - - - -
10Y - - - -
Since launch - - - -
Y-1 - - - -
Y-2 - - - -
Y-3 - - - -
Y-4 - - - -
Y-5 - - - -

Risk table

End date

Risk table Fund volatility Benchmark volatility Tracking error Information ratio Sharpe ratio Beta Alpha
1M - - - - - - -
QTD - - - - - - -
3M - - - - - - -
6M - - - - - - -
YTD - - - - - - -
1Y - - - - - - -
3Y - - - - - - -
5Y - - - - - - -
8Y - - - - - - -
10Y - - - - - - -
Since launch - - - - - - -

Price table

Start date

End date

Price Date Portfolio AUM
- - -

NAV

First NAV date 01/10/09

Administration

Distribution country

Distribution countries
United Kingdom

Fees

Ongoing Charges 1.79%

Fund facts

Currency USD
Start date 31/12/92
Asset class FRAMLINGTON EQUITIES
RI fund False
Legal authority Commission de Surveillance du Secteur Financier

Portfolio management

Fund Manager Stephen KELLY
Co-manager David SHAW
Investment team MT Framlington Thematic Equity

Structure

Investment area North America
Legal form SICAV

Subscription and redemption

The subscription, conversion or redemption orders must be received by the Registrar and Transfer Agent on any Valuation Day no later than 3 p.m. Luxembourg time. Orders will be processed at the Net Asset Value applicable to such Valuation Day. The investor's attention is drawn to the existence of potential additional processing time due to the possible involvement of intermediaries such as Financial Advisers or distributors.The Net Asset Value of this Sub-Fund is calculated on a daily basis.

Literature

Documents