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AXA WF Framlington Robotech
Last NAV 171.4200 USD as of 21/01/20
Why this fund
Robotics is rapidly changing every aspect of how we work and live, increasing efficiency, precision and safety across multiple industries. The demand for industrial robots has accelerated in recent years due to the ongoing trend towards automation and innovative technological advancements. Advances in technology have made robots capable of performing highly sophisticated and delicate work as well as working alongside humans to drive productivity and efficiency.
AXA WF Framlington Robotech offers a focused entry point into this multi-decade investment theme.
Reasons to invest:
Access the long-term growth potential of the rapidly expanding robotics market. Supported by shifting demographics and improving technologies, the robotics market is expected to grow 10% a year until 2025.1
Exposure to companies with growth potential across multiple industries. We focus on the investable areas of the robotics market, such as: industrial automation, robotic-assisted surgery, driverless vehicles and the underlying intelligence which supports robotic technologies.
Benefit from an actively managed, unconstrained approach. Including more than 400 meetings with robotics and technology executives each year, our detailed coverage of the investment universe helps us identify companies with above-average growth prospects in this emerging theme.
"We believe that innovation in robotics is a significant growth opportunity, and we are just in the early stages of this multi-decade investment theme."
Tom Riley, Portfolio Manager
1 BCG, BofA Merrill Lynch, 2015. Data from the 2018 IFR World Robotics report also broadly corroborates this forecast, anticipating +16% annual growth in the global industrial robotics market until 2021. Data correct as at 30 June 2019.
2 Portfolio allocations are estimates based on the overall strategy and are given for indicative purposes only and subject to change.
3 AXA IM, as at 30 June 2019
The capital of the Fund is not guaranteed. The 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.
Counterparty Risk: Risk of bankruptcy, insolvency, or payment or delivery failure of any of the Fund's counterparties, leading to a payment or delivery default.
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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 Robotech AXA WF Framlington Robotechfund 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. In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.
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The Sub-Fund seeks to provide long-term capital growth, measured in USD, from a portfolio of listed equity and equity related securities.
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 rose during December, capping a strong year for equity markets and an excellent year for the Robotech strategy. The political situation between the US and China appears to be easing with the Phase 1 Trade Deal between the US and China now scheduled for signing in January. The result of the UK election has less direct impact on the majority of the names held in the portfolio. However, a clear victory for the ruling Conservative party sets the pathway to leave the EU which ultimately reduces uncertainty and in due course, we anticipate some of the spending decisions that had been delayed due to this uncertainty, to provide a modest tailwind for European investment and CAPEX. We are about to commence the year-end earnings seasons for the majority of the companies in the portfolio where we anticipate that companies will continue to talk trade uncertainty impacting their businesses as the provide their initial outlooks for 2020. However, we also see several major investment cycles in 2020 that we believe should be supportive to robotics and automation investments – most significantly 5G smartphones and Electric Vehicle launches that we discuss in more detail below. The fund performed well in December, with semiconductors again being a key driver of performance. We saw broad based strength from our holdings, particularly AMD (Advanced Micro Devices), Silicon Labs, Microchip, Qualcomm and NXP Semiconductors. Our position in German software company TeamViewer rose 25% during December. We initiated our position in TeamViewer in September when it IPO’d and have been building it subsequently. TeamViewer operates a connectivity platform which allows for the monitoring and controlling of IoT endpoints such as industrial machines, robots, wind turbines. Portfolio Activity We added to our position in Yaskawa Electric, a leading Japanese robot manufacturer as we see underlying demand for industrial robots start to improve after a prolonged period of weakness. The last 3-4 months has seen quite a strong rotation in to more cyclical parts of the market such as Industrials and Semiconductors, so we used some of the proceeds where we had taken some profits in November in these names to add to some of our healthcare names where we currently see a little bit more value. We added to positions in Intuitive Surgical, the leading manufacturer of robotic surgery tools and added to two smaller cap spine surgery companies, Nuvasive and Globus Medical that have developed robotic systems for spinal surgery. We sold our positions in TE Connectivity and Becton Dickinson, seeing better opportunities elsewhere. Market Outlook Given the strong returns seen in equity markets in 2019, it is pleasing to see that economic data is stabilising and as mentioned in the November update, we are seeing signs that some of the leading indicators, such as machine tool orders and robot orders are starting to improve. Traditionally January can be a quieter time for Asian CAPEX where activity is lower in the run up to Chinese New Year – therefore we believe that activity in February and March will set the tone for the remainder of the year. We anticipate several major 5G smartphone launches which will require a significant CAPEX investment for their manufacturing. It’s important to note that the Consumer Electronics industry is now the largest buyer of Industrial robotics, over taking the Automotive industry a couple of years ago. The last major smartphone CAPEX cycle was in 2017 and this benefitted a number of companies in a diverse set of end markets ranging from Vision Systems, to traditional Industrial Robots, to Laser Manufacturers. We see 2020 and 2021 being major years for launches of Electric Vehicles and the start of the transition of this technology going from niche to more mainstream. Whilst we are not forecasting broad adoption of electric in the immediate future, a significant amount of CAPEX will need to be spend over the next few years to build the manufacturing facility to make these cars. Focussing longer term, it is clear that semiconductors have been proliferating more and more in the world around us over the last decade as the world has become more connected. Historically, this has been most visible in the form of smartphones and other consumer devices. The last few years has seen a broadening application in to other parts of the economy such as industrials and autos. We believe that we are at the early stages of a growth inflection for semiconductors as new areas like Electric Vehicles, Autonomous Vehicles, 5G Communications and Connected Factories really start to see adoption. The importance of semiconductors in enabling these technology shifts is exactly why they are being fought over at present, with both the US and China keen to protect their national interests and proprietary intelligence. Despite the uncertainty presented by the US/China disputes, US Economic Activity remains strong - We think that the potential for industrial and manufacturing capex investment in the US could provide a supportive backdrop for the next few years. More broadly we expect innovation to continue at a rapid pace, with continued improvements in connectivity and semiconductors that are crucial components of the robotics and automation ecosystem. Further developments in software and areas such as artificial intelligence and big data analysis are also likely to broaden the applications of automated systems.
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||20/12/16|
|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||Tom RILEY|
|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.