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AXA WF Framlington American Growth

ISIN LU0361788507

Last NAV 512.9600 EUR as of 20/02/20

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.

Main documents

KIID 20/02/2020

Fund manager comment : 31/12/19

Main changes to the portfolio during December No major changes to the portfolio were made in December. Factors affecting performance during December The Fund marginally underperformed its comparative benchmark, the Russell 1000 Growth Index, over the month. This was largely driven by profit taking in several of our healthcare holdings, such as DexCom and Edwards Lifesciences, which enjoyed strong gains in 2019. Current market influences and outlook The US equity market continued to rally in December as investors became increasingly confident on the outlook for the economy. Sentiment was further boosted by optimism that the US and China could reach an interim agreement in the trade war. Consumer and business confidence levels remain high, unemployment is low and wages rising. Most importantly, forward-looking credit indicators continue to demonstrate credit availability is high suggesting an end to the current economic expansion is not imminent. We also believe that a recent shift in the language emanating from the US Federal Reserve (Fed) is highly significant. Following the latest interest rate cut at the end of October, Fed Chairman Powell stated that interest rates are not going to be increased again until inflation overshoots its longstanding 2% target by a substantial margin. Given that inflation has struggled to reach this level during the 11 years of the current expansion, we believe that the likelihood of interest rate increases by the Fed has been pushed out by a number of years. Stable interest rates and an ongoing economic expansion should be positive for equity markets 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
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NAV

First NAV date 01/10/09

Administration

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