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AXA WF Framlington Digital Economy
Last NAV 153.0800 USD as of 21/01/20
Why this fund
Internet retailing is forecast to grow 14% a year over the next five years1, as consumers become ever-more connected through mobile, as digital-savvy millennials enter their peak spending years and older generations grow more comfortable shopping online, and as digital-enabled companies take increasing market share from traditional high street retailers. The fund offers a focused entry point into this multi-decade investment theme.
Reasons to invest:
- Access the long-term potential of the rapidly expanding digital economy
Supported by mobile commerce growth in developed markets and rising internet usage in emerging markets, internet retailing expected to grow at an average rate of 14% per year over the next five years1. We believe this represents a significant structural opportunity for investors seeking long-term growth2.
- Gain exposure to a diversified and growing universe
Even at the early stages of this long-term trend, the digital economy represents a diverse, multi-cap universe of companies operating across multiple sectors, not typically captured in traditional technology indices.
- Benefit from an actively managed, unconstrained approach
With hundreds of meetings with technology executives each year, our detailed coverage of the investment universe helps us identify companies with above-average growth prospects in this emerging theme.
Where does the digital economy strategy invest?
- Discovery of the product
How people search for and discover products and services, I.e. online search, digital marketing, advertising and social media.
E-commerce companies, web portals and mobile apps which provide consumers with convenient and reliable product choices.
Companies that help facilitate payments and logistics to keep pace with consumers' increasing expectations of same-day delivery.
- Data and enablers
Digital companies that act as 'enablers' for traditional businesses looking to adapt to the fast evolving digital landscape.
Jeremy Gleeson, Portfolio Manager
1 Citi GPS: Technology at Work v3.0, August 2017. This is a forecast and is not a guarantee of future performance.
2 Please note that expectations of growth are no guarantee of future performance.
3 Euromonitor International, Citibank “Technology at work v3.0”, August 2017.
4 AXA IM as at 30 November 2017
Please note that the funds or securities referred to herein may not be registered nor available in your jurisdiction, and that the information provided does not constitute an offer to buy or sell, solicitation or investment advice. Please check the countries of registration with the asset manager, or on the website, where a fund registration map is available.
Risk of bankruptcy, insolvency, or payment or delivery failure of any of the 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.
Not for Retail distribution: This document is intended exclusively for Professional, Institutional, Qualified or Wholesale Clients / Investors only, as defined by applicable local laws and regulation. Circulation must be restricted accordingly.
This promotional communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.
Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.
Before making an investment, investors should read the relevant Prospectus and the Key Investor Information Document / scheme documents, which provide full product details including investment charges and risks. The information contained herein is not a substitute for those documents or for professional external advice.
The products or strategies discussed in this document may not be registered nor available in your jurisdiction. Please check the countries of registration with the asset manager, or on the web site https://www.axa-im.com/en/registration-map, where a fund registration map is available. In particular units of the funds may not be offered, sold or delivered to U.S. Persons within the meaning of Regulation S of the U.S. Securities Act of 1933. The tax treatment relating to the holding, acquisition or disposal of shares or units in the fund depends on each investor’s tax status or treatment and may be subject to change. Any potential investor is strongly encouraged to seek advice from its own tax advisors.
AXA WF Framlington FinTech is a sub-fund of AXA World Funds. AXA WORLD FUNDS ‘s registered office is 49, avenue J.F Kennedy L-1885 Luxembourg. The Company is registered under the number B. 63.116 at the “Registre de Commerce et des Sociétés” The Company is a Luxembourg SICAV UCITS IV approved by the CSSF and managed by AXA Funds Management, a société anonyme organized under the laws of Luxembourg with the Luxembourg Register Number B 32 223RC, and whose registered office is located at 49, Avenue J.F. Kennedy L-1885 Luxembourg.
Past performance is not a guide to current or future performance, and any performance or return data displayed does not take into account commissions and costs incurred when issuing or redeeming units. References to league tables and awards are not an indicator of future performance or places in league tables or awards and should not be construed as an endorsement of any AXA IM company or their products or services. Please refer to the websites of the sponsors/issuers for information regarding the criteria on which the awards/ratings are based. The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested. Exchange-rate fluctuations may also affect the value of their investment. Due to this and the initial charge that is usually made, an investment is not usually suitable as a short term holding.
Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 7 Newgate Street, London EC1A 7NX.
This webpage is for professional clients only and must not be relied upon by retail clients. Circulation must be restricted accordingly. Any reproduction of this information, in whole or in part, is prohibited. This communication does not constitute an offer to buy or sell any AXA Investment Managers product or service. It is provided to you for information purposes only. The views expressed do not constitute investment advice. The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested. AXA World Funds Framlington Digital Economy is a sub-fund of AXA World Funds, which is a SICAV fund domiciled in Luxembourg. It is recognised by the UK Financial Conduct Authority and is available for sale to the public in the UK. AXA WORLD FUNDS ‘s registered office is 49, avenue J.F Kennedy L-1885 Luxembourg. The Company is registered under the number B. 63.116 at the “Registre de Commerce et des Sociétés”. The Company is a Luxembourg SICAV UCITS IV approved by the CSSF. Before making an investment, investors should read the relevant Prospectus and the Key Investor Information Document, which provide full product details including investment charges and risks. The information contained herein is not a substitute for those documents or for independent advice. In Luxembourg, this webpage is intended for professional clients only, as defined by local laws and the MiFID directive, and is distributed by AXA IM Benelux SA/NV, 1 Place du Trône - 1000 Brussels Belgium.
The Sub-Fund seeks to provide long-term growth, in USD, from an actively managed listed equity and equity-related securities portfolio.
Synthetic Risk & Reward Information scale
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?
Fund manager comment : 31/12/19
Performance & Market environment Global equity markets continued to rise in December, with the MSCI ACWI gaining 3.5%. Markets were supported by the announcement of an interim US-China trade agreement and hopes for a smoother Brexit. In the US, all major indices rose to all-time highs during the period as robust economic data and improving trade rhetoric supported markets. Additionally, a supportive Fed proved helpful; although the Fed maintained rates at its December meeting, Chairman Jerome Powell reiterated that interest rates may remain on hold throughout 2020. European markets also performed well, buoyed by the US-China trade deal and as uncertainty subsided in relation to the UK’s eventual withdrawal from the EU; European indices hit a succession of record highs. UK stocks also posted gains over the month, as a Conservative Party victory in the general election drove markets upwards. The holiday season continued to demonstrate the strength of the Digital Economy landscape. Despite a shorter post-Thanksgiving shopping period, ecommerce sales during the holiday season hit a record high, a market intelligence report issued by Mastercard reporting US online sales growth at 18.8% compared to 2018. During December, our exposure to the Decision theme contributed the most to performance with Media related games companies Activision Blizzard and Electronic Arts both delivering strong return over the period as well as the Chinese ecommerce giant Alibaba on the back of its Singles’ Day shopping sales record. The performance was somehow offset by our Delivery theme, particularly with our logistics real estate names. From an individual stock perspective, the strategy has seen a significant contribution from our position in TeamViewer – the German cloud based connectivity software company – which rose by 25% during December. We initiated our position in TeamViewer in its IPO in September and have been building it subsequently. Yext, the keeper and provider of real-time business information was the fund's biggest detractor, as it reported results below expectations. The company's growing presence in the enterprise led to a reorganisation of its sales force, which caused some disruption during the quarter. We are monitoring further development of the situation. Portfolio Activity There was relatively little activity during the month, however, we have taken advantage of some stock specific news to reallocate our investments where appropriate. Market Outlook Given the strong returns seen in equity markets in 2019, it is pleasing to see that economic data is stabilising and some of the leading indicators are starting to improve. The underlying strong results in companies associated with the Digital Economy and the multiple secular growth drivers continue to underpins the healthy demand for innovative solutions to help businesses become more digital, productive and efficient. While macro developments and political uncertainties will continue to dominate sentiment, the overall outlook for the companies in our fund continues to be positive. Digital Transformation is expected to be an important business focus for the coming years, and the portfolio remains well positioned to benefit from the trends associated with the digital economy theme, such as online commerce, digital media consumption, electronic payments and digital transformation.
Past performance is not a reliable indicator as to future performance.
Performance calculations are net of management fees. Performance are shown as annual performance ( 365 days). In the case where the currency of the investor is different from the Fund’s reference currency the gains are capable of varying considerably due to the fluctuations of the exchange rate.
|Reference index||Start date||End date|
|Performance table||Net performance||Reference index||Start date||End date|
|Risk table||Fund volatility||Benchmark volatility||Tracking error||Information ratio||Sharpe ratio||Beta||Alpha|
|First NAV date||25/10/17|
|Asset class||FRAMLINGTON EQUITIES|
|Expertise||Global Thematic Equity|
|Range||AXA World Funds|
|Custodian||State Street Bank Luxembourg S.C.A|
|Asset manager||AXA Investment Managers UK Limited|
|Depositary||State Street Bank Luxembourg S.C.A|
|Legal asset manager||AXA Funds Management SA (Luxembourg)|
|Fund Manager||Jeremy GLEESON|
|Investment team||MT Framlington Thematic Equity|
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. Minimum initial investment: USD 5,000,000 or the equivalent in the relevant currency of the relevant Share class. Minimum subsequent investment: USD 1,000,000 or the equivalent in the relevant currency of the relevant Share class.