AXA WF Framlington Clean Economy

Main changes to the portfolio We made no material changes to the portfolio during November. Factors affecting performance Global equities made positive progress over the period. Quality and growth, as investment styles, continued to outperform the market in all regions outside of the UK, where small caps performed best. Technology and Healthcare were the strongest performing sectors globally, with industrials giving back some earlier strength. Against this backdrop, the portfolio outperformed the benchmark over the period. Within Responsible Nutrition, Halma contributed positively to performance, following strong quarterly earnings and a . Within Smart Energy, Siemens Gamesa contributed positively, following positive comments from management on the outlook for the offshore wind market and speculation that Siemens (majority shareholder) may buy a further stake at a premium. Johnson Matthey in Sustainable Transport was the greatest detractor from performance following weaker near term guidance which disappointed the market. Current market influences and outlook The ongoing uncertainty surrounding trade conflict is currently weighing on investment activity and there is evidence of a slowdown in growth. Recent economic data has highlighted that many parts of the global industrial economy are in recession. However, similar to the industrial economic downturn in 2014-15, at this stage we do not anticipate this to develop into broader economic recession at this stage, and note continued strength in broader macro data particularly from the US. Management tone has generally remained constructive throughout recent meetings. Overall, we continue to expect global equities to generate modestly positive earnings growth this year. The liquidity backdrop is supportive and healthy, growing dividend yields offer additional support to markets whilst macroeconomic uncertainties persist. Recent indications of a de-escalation of trade conflict is being viewed positively by investors. The portfolio retains its bias towards high quality businesses which benefit from clear secular growth trends within the Clean Economy.