AXA WF Framlington UK

ISIN LU1319653462

Last NAV 136.3200 GBP as of 17/10/19

Why this fund

An unconstrained* UK equity fund managed by Chris St John with the flexibility to exploit opportunities across the full market cap spectrum.

AXA World Funds Framlington UK has a long-term multi-cap approach with a structural bias to the higher growth potential of small and mid-cap UK companies. The Fund draws on the support of Framlington Equities UK investment desk and its collaborative approach to investment ideas. In addition to the UK, the Luxembourg-based SICAV will be registered for distribution in France, the Netherlands, Sweden, Finland, Norway, Denmark, Austria, Belgium, Germany, Italy, Switzerland, Italy and Spain in due course.

Reasons to invest:

  1. Unconstrained*, fundamental approach to long-term investment, with portfolio decisions primarily driven by bottom-up company analysis
  2. Established multi-cap strategy looking to generate alpha particularly from the fertile ground of the FTSE 250, small cap and AIM companies
  3. First off-shore access to the successful, long-established Framlington Equities UK desk

Chris St. John, lead fund manager, has 16 years of investment experience with a strong track record managing UK equities. He is also lead manager of the AXA Framlington UK Mid Cap Fund. Chris will be supported by renowned fund manager Nigel Thomas. This duo has been working together within our UK team since Chris joined AXA IM in 2005.

Key figures

  • 60 - 90

    Typically 60 – 90 securities held

  • > 70%

    Active share is typically >70%

  • Bottom-up

    Bottom-up company analysis

Fund facts:

  • Launch date: 02/03/2016
  • Lead Portfolio Manager: Chris St John
  • Deputy Fund Manager: John King

Past performance is not a guide to the future.

Source: Lipper, March 2008 – December 2015.

Note: This chart illustrates Chris St John's track record as a fund manager since 2008 across funds he has managed (composite including AXA Framlington UK Smaller Companies Fund and AXA Framlington UK Mid Cap Fund), compared to an appropriate benchmark, constructed using the index each of the funds was benchmarked against at the time (FTSE Small Cap and FTSE 250 (excl. Investment Trusts)) respectively. Performance Basis: net of fees, income reinvested.

Overview

Investment objectives

The Sub-Fund seeks to achieve long term capital growth measured in GBP by investing in large, medium and small capitalisation companies domiciled or listed in the United Kingdom.

Risk

Synthetic Risk & Reward Information scale

1 2 3 4 SRRI Value 5 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 are subject to some levels of variation, which may result in 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.

Investment horizon

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

Fund manager comment : 30/09/19

Key Points • The Fund returned +1.46% in September. • Equity returns were positive in September, as a small improvement in the global economic surprise indicators helped cyclical stocks rally over the month. • We used share price volatility to add to core holdings and make reductions. The holding in Consort Medical was sold. Market Snapshot • Equity returns were positive in September as a small improvement in the global economic surprise indicators helped cyclical stocks rally over the month. • Brexit developments remain unpredictable and continue to influence both the levels of sterling and the demand for UK economically exposed stocks. Capital flows and short-term volatility were a feature. Fund Performance • The Fund returned +1.46% in September, underperforming its comparative benchmark, the FTSE All-Share Index, which returned +2.95%. Fund Activity • From a sector allocation perspective, the underweight position in consumer goods was positive, whereas the overweight position in technology was negative. • Positive stock performances of note included the holdings in Charter Court Financial, TP Icap and Serica Energy. Ultra Electronics and Dechra reduced as a result of profit-taking. Quixant guided to profits below market expectations and the shares sold off. • We used share price volatility to add to core holdings and make reductions. The holding in Consort Medical was sold. Outlook • Global economic conditions, in which all of our companies must operate, are flashing amber and although the causes may be nuanced and country specific to some degree, the overall picture is one of economic slowdown. However, central banks have once again responded, increasing monetary stimulus via interest rate cuts in the US or further quantitative easing. • Global liquidity remains plentiful, inflation remains subdued, anxiety is widespread and over the past year, global equity markets have risen. What will turn this ‘wall of worry’ into a ‘wall of fear’ is not clear while such loose monetary policy and plentiful liquidity is maintained. • Given the ongoing spread between the earnings yield of UK equities and BBB corporate bond yields, activists, corporate buyers, private equity firms and UK Equity investors with a long-term investment horizon will be enjoying the opportunity short-term fears provide. • We remain focused on UK and internationally-exposed businesses, where the fundamental profit drivers remain entrenched and equity holders benefit from the capital allocated and risks taken by management. We continue to believe that a rewarding strategy is to actively invest in UK-listed companies that are compounding their earnings and dividends, where corporate governance is world leading, where contract law and title law are dependable, and where company management teams are permanently accessible.

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

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Performance table

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Y-3 - - - -
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Risk table

End date

Risk table Fund volatility Benchmark volatility Tracking error Information ratio Sharpe ratio Beta Alpha
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8Y - - - - - - -
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Price table

Start date

End date

Price Date Portfolio AUM
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NAV

First NAV date 03/03/16

Administration

Fees

Ongoing Charges 1.01%

Fund facts

Currency GBP
Start date 02/03/16
Asset class FRAMLINGTON EQUITIES
RI fund False
Legal authority Commission de Surveillance du Secteur Financier

Portfolio management

Fund Manager Christopher ST. JOHN
Co-manager John KING
Investment team MT Framlington Global Equity

Structure

Investment area UK
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