Experience the new Fund Centre

AXA WF Framlington Digital Economy

ISIN LU1694772994

Last NAV 142.5500 USD as of 16/12/19

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.

Key figures

Only 9%

of retail transactions are done digitally today; a number only likely to rise *3
40-60 stocks

Global multi-cap strategy investing in a concentrated portfolio **4
50+

Regional and sector experts in Framlington Equities **4

The Evolving Economy

Welcome to equity investing’s new reality.

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.

Decision-making

E-commerce companies, web portals and mobile apps which provide consumers with convenient and reliable product choices.

Delivery

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.

“The constant advances in data analytics and other enabling applications will continue to improve and evolve online consumer experiences as well as the digital presence of companies. While we are only at the beginning of this significant trend, it already represents a huge opportunity for investors.”
Jeremy Gleeson, Portfolio Manager

Source:
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 FACTORS

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.

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.

Overview

Investment objectives

The Sub-Fund seeks to provide long-term growth, in USD, from an actively managed listed equity and equity-related securities portfolio.

Risk

Synthetic Risk & Reward Information scale

1 2 3 4 5 SRRI Value 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 may be subject to sudden and significant variation, which may result in substantial 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. 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.

Investment horizon

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

Main documents

KIID product 08/07/2019

Fund manager comment : 30/11/19

Performance & Market environment Global equity markets continued to rise in November, with the MSCI ACWI gaining 2.3%. Markets were supported by more optimism regarding the trade discussions, combined with a stronger than expected earnings season. In the US, the S&P 500 reached a new all-time high, driven by optimism around prospects for a trade deal, strong earnings results and healthy economic indicators showing that consumption remains an important positive driver of the country's economic growth. A further interest rate reduction in the US in late October was an additional catalyst for positive stock moves during the month. In Europe, PMIs figures are showing some signs of stabilisation. In the UK, 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. The outcome of the upcoming General Election will perhaps provide more clarity on this ongoing saga. In, Asia, Chinese equity markets increased over the month. The Chinese government has significantly accelerated 5G rollouts, and latest economic data show that consumer spending, especially ecommerce, remains very resilient. A couple of important events in November have showed the strength of the Digital Economy landscape. In China, Alibaba had its Singles’ Day shopping event and reached record sales of over $38 billion, up 26% compared to last year. In the United States, Adobe released its online shopping report for the 2019 holiday season their data showed that online shoppers spent $9.4bn on Cyber Monday, up 20% from the same day a year ago. During November, our exposure to the enabler theme contributed the most to performance, more particularly names that are providing cloud-based solutions: cloud-based contact centre platform provider Five9 published strong results. Companies that are undergoing digital transformations are increasingly aware that call centres are a key part of their businesses, with seamless customer experience becoming the gold standard. Other positive contributions came from ServiceNow, cloud-based Information Technology Operations Management (ITOM) software player and Q2 Holdings, cloud-based virtual banking solutions provider for financial institutions. Portfolio Activity We purchased cloud-based software provider Veeva Systems during the month. Veeva is selling cloud-based productivity tools to pharmaceutical companies to help them manage sales pipelines and client relationships more efficiently. They also provide software that enables the digitalisation of data associated with drug development. Market Outlook Market sentiment improved during the month as there appeared to be some progress made in trade discussions between the US and China. The underlying strong results in companies associated with the Digital Economy 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.

Performance

Performance chart

Period

10Y

YTD

Since launch

Start date

End date

The figures provided relate to previous months or years and past performance is not a reliable indicator as to future performance. The Fund may not have a reference index. In such case, the Fund’s performance indicator is given as a basis for comparison only.

SRRI stands for Synthetic Risk & Reward Information: From 1 lower risk to 7 higher risk. Lower risk has potentially lower reward and higher risk has potentially higher reward. 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.

Benchmark

Reference index	Start date	End date
-	-	-

Performance table

End date

Performance table	Net performance	Reference index	Start date	End date
-	-	-	-	-
1M	-	-	-	-
QTD	-	-	-	-
3M	-	-	-	-
6M	-	-	-	-
YTD	-	-	-	-
1Y	-	-	-	-
2Y	-	-	-	-
3Y	-	-	-	-
4Y	-	-	-	-
5Y	-	-	-	-
8Y	-	-	-	-
10Y	-	-	-	-
Since launch	-	-	-	-
1y	-	-	-	-
2y	-	-	-	-
3y	-	-	-	-
4 ans	-	-	-	-
5y	-	-	-	-
8 ans	-	-	-	-
10y	-	-	-	-
Since launch	-	-	-	-

Risk table

End date

Risk table	Fund volatility	Benchmark volatility	Tracking error	Information ratio	Sharpe ratio	Beta	Alpha
1M	-	-	-	-	-	-	-
QTD	-	-	-	-	-	-	-
3M	-	-	-	-	-	-	-
6M	-	-	-	-	-	-	-
YTD	-	-	-	-	-	-	-
1Y	-	-	-	-	-	-	-
3Y	-	-	-	-	-	-	-
5Y	-	-	-	-	-	-	-
8Y	-	-	-	-	-	-	-
10Y	-	-	-	-	-	-	-
Since launch	-	-	-	-	-	-	-

Price table

Start date

End date

Price	Date	Portfolio AUM
-	-	-

NAV

First NAV date	25/10/17

Administration

Distribution country

Distribution countries
Austria
Denmark
Finland
France
Germany
Italy
Liechtenstein
Luxembourg
Netherlands
Norway
Spain
Sweden
Switzerland
United Kingdom

Fees

Ongoing Charges	0.78%

Fund facts

Currency	USD
Start date	24/10/17
Asset class	FRAMLINGTON EQUITIES
RI fund	False
Legal authority	Commission de Surveillance du Secteur Financier

Portfolio management

Fund Manager	Jeremy GLEESON
Co-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.