AXA WF Framlington Robotech

ISIN LU1529781541

Last NAV 159.6700 USD as of 05/12/19

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.

Key figures

  • 10%

    Global robotics market expected annual growth until 2025

  • 40-60 stocks

    Global multi-cap strategy investing in a concentrated portfolio (2)

  • 49

    Regional and sector experts in Framlington Equities (3)


"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

Source:

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

KEY RISKS

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.

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 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.  

 

In Belgium, 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.   

Overview

Investment objectives

The Sub-Fund seeks to provide long-term capital growth, measured in USD, from a portfolio of listed equity and equity related securities.

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

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 : 31/10/19

What’s happening? Global Equity markets rose during the month as corporate result for the September quarter earning seasons came in better than expected, geopolitical tensions eased, and the Federal Reserve cut interest rates to support the US economy. We again saw stronger performance from the cyclical areas of the market such as Industrials, with notable performance from some of our European and Japanese holdings. The leading indicators are showing mixed signals at present, with the US Institute for Supply Management PMI Index reporting a score of 48.3 for October, improving modestly from September’s reading, suggesting that the weakness in the Industrial space is now stabilising. Portfolio positioning and performance The strategy outperformed the broader market during the month. We again saw strength in the Industrial space and technology hardware and semiconductors. Kion, a German manufacturer of warehouse automation equipment performed strongly after reporting order in Q3 which were materially better than anticipated and it better profitability for the quarter. After a challenging 12 months for Kion, due to trade war impacts and weaker German macro environment, its pleasing to see the stabilisation coming through now as its customers increase their investments following a period of underinvestment. We saw good results from TSMC, the leading foundry for semiconductor manufacturing. Interestingly, they announced a meaningful increased to their current CAPEX plans citing strong demand from their customer base for chips for 5G, AI and High performance compute. We believe that this points to favourable trends anticipated for the semiconductor industry in 2020 as growth returns to the space. We were less active on the strategy during October. We continued to build our position in Marel an Icelandic food processing equipment manufacturer. We added to our position in AMD, a US semiconductor company who’s GPU chips are being increasingly used in Big Data applications and Artificial Intelligence. We trimmed our position in Siemens due to its higher exposure to Europe where Industrial activity remains muted. Outlook Currently, the US/China trade war issues continue to weight on sentiment and business activity. With the UK now scheduled to have an election on the 12th December, we are perhaps getting closer to having a more definitive outcome decided on the ongoing Brexit negotiations – with the probability of a disorderly exit from the EU having reduced. 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. No assurance can be given that the Robotech Strategy will be successful. Investors can lose some or all of their capital invested. The Robotech strategy is subject to risks including; Equity; Emerging markets; Investments in specific sectors or asset classes; Global investments; Investments in small and micro capitalisation universe.

Performance

Performance chart

Period

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End date

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.

Performance table

End date

Performance table Net performance Reference index Start date End date
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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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6M - - - - - - -
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8Y - - - - - - -
10Y - - - - - - -
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Price table

Start date

End date

Price Date Portfolio AUM
- - -

NAV

First NAV date 20/12/16

Administration

Fees

Ongoing Charges 0.77%
Management fees 0.60%

Fund facts

Currency USD
Start date 19/12/16
Asset class FRAMLINGTON EQUITIES
Range AXA World Funds
Custodian State Street Bank Luxembourg S.C.A
Asset manager AXA Investment Managers UK Limited
Legal asset manager AXA Funds Management SA (Luxembourg)

Portfolio management

Fund Manager Tom RILEY
Investment team MT Framlington Thematic Equity

Structure

Investment area Global
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. 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.

Literature