Experience the new Fund Centre
AXA WF Framlington Fintech
ISIN LU1914340051
Last NAV 116.5800 EUR as of 06/03/20
Why this fund
The number of daily financial transactions has risen steadily, and digital payments are being increasingly embedded into routine activities, with consumer behaviour ever-changing. Many financial companies are expanding their digital offering in order to capture the potential of fintech, serve their customers more efficiently and remain ahead of their competitors. The fund offers a focused entry point into this multi-decade investment theme.
Reasons to invest:
Diversified access to the growth potential of the fintech universe
We focus on companies that we believe are well-placed to benefit from the rapid growth of the fintech market, investing in three main sub-themes we have identified across the full fintech value chain – Cashless Society, Innovative Leaders and Technology Enablers.
Gain exposure to the fintech ecosystem
We only invest in companies that use or create fintech as a key source of competitive advantage in their fields. This ensures that each and every stock in the portfolio is supported by multi-decade drivers of growth, regardless of companies’ geographic listing or sector classification. Some of these companies may be smaller, ‘pure play’ fintech companies, whereas others are larger companies that have growing exposure to the theme.
Benefit from an active, long-term approach to fintech
Aiming to give investors sustainable growth, our investment process is rooted in Framlington Equities’ established fundamental stock selection philosophy, which seeks above-average growth prospects over the long term1.
Key figures
-
$500bn
Estimated spend by financial services companies on IT infrastructure in 2021*2
-
40-60 stocks
Global multi-cap strategy investing in a concentrated portfolio
-
2021
eWallets are forecast to overtake credit/debit card as the leading payment method by 2021**3
Where does the fintech strategy invest?
Cashless Society
Companies that operate across online shopping, digital payments, payment processing for merchants, integrated omni-channel and cross-border payment solutions.
Innovative Leaders
Companies that operate across traditional areas of banking, insurance and wealth management, which use mobile and digital innovations to serve their large, existing client base.
Technology Enablers
Companies that help both fintech natives and traditional financial firms cut costs, personalize their services or improve security for their customers.
“We believe that fintech represents a large and expanding ecosystem of companies which are still at the early stages of long-term growth. As fintech companies move from competition to collaboration, we expect the financial industry’s profit pool to be redistributed in a major way, creating significant opportunities for investors as the industry matures.”
Vincent Vinatier, Portfolio Manager
Source:
1 Please note that expectations of growth are no guarantee of future performance.
2 IDC Report, 2018
3 World Pay Global Payment Report 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 objective is to seek long-term growth, in USD, from an actively managed listed equity and equity-related securities portfolio. The Share Class aims at hedging the foreign exchange risk resulting from the divergence between the reference currency of the Sub-Fund and the currency of this Share Class by using derivatives instruments whilst retaining the exposure to Investment Policy of the Sub-Fund.
Risk
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?
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. 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
Fund manager comment : 31/01/20
Main changes to the portfolio during January In January, we sold out of Danish software company Simcorp. Although an attractive long-term growth story, Simcorp had performed strongly and the medium-term risk/reward appeared increasingly skewed to the downside. We started building a position is Blackrock who, through investment in technology, has built a strong competitive advantage that should underpin strong revenue growth and market share gains over the next few years. Factors affecting performance during January In January 2020, market sentiment was dominated by political and public health issues. Regional performance was unequal, with emerging markets and China under-performing significantly. Global equity markets performed well in the first half of the month but pulled back in the later part of the month as negative developments spooked investors, including the assassination of an Iranian general by the US that ratcheted up tensions in the middle east and the rapid spread of the Chinese Coronavirus. The FinTech fund out-performed its performance benchmark in January. Top positive contributors in January include ZScaler (rebound after December weakness), Blackline (broker upgrades), Global Payments (brokers upgrades), Verisk (disposal of imaging assets will boost margins and reduce capital intensity) and S&P Global (favourable market environment). Top negative contributors were HDFC Bank, Capitec, ING, SBanken and ZhongAn as financial stocks were generally under pressure in January due to fears around the eventual impact of the Chinese Coronavirus crisis on the global economy. Current market influences and outlook Despite the short-term disruption that the Chinese Coronavirus is likely to generate, we continue to see clear signs of economic stabilization as central banks’ aggressive easing prop-up the global economy (and equity markets). As already discussed, the extent of any economic slowdown should be greatly mitigated by central banks’ determination to be proactive. If history is any guide, the Coronavirus crisis, whilst a terribly sad human tragedy, should have a limited impact on global growth prospects past the current quarter. The FinTech space itself remains very attractive, with strong operating trends and resilient growth expectations. We believe that fintech represents a large and expanding ecosystem of companies which are still at the early stages of long-term growth. As fintech companies move from competition to collaboration, we expect the financial industry’s profit pool to be redistributed in a major way, creating significant opportunities for investors as the industry matures.
Performance
Performance chart
Period
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 | - | - | - | - |
No performance data available
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 | - | - | - | - | - | - | - |
No performance data available
Price table
Start date
End date
| Price | Date | Portfolio AUM |
|---|---|---|
| - | - | - |
No NAV data available
NAV
| First NAV date | 14/12/18 |
|---|
Administration
Distribution country
| Distribution countries |
|---|
| Austria |
| Belgium |
| Denmark |
| Finland |
| France |
| Germany |
| Italy |
| Luxembourg |
| Netherlands |
| Norway |
| Singapore |
| Spain |
| Sweden |
| Switzerland |
Fees
| Ongoing Charges | 1.83% |
|---|
Fund facts
| Currency | USD |
|---|---|
| Start date | 14/12/18 |
| Asset class | FRAMLINGTON EQUITIES |
| RI fund | False |
| Legal authority | Commission de Surveillance du Secteur Financier |
Portfolio management
| Fund Manager | Vincent VINATIER |
|---|---|
| Co-manager | Alexandre FADE |
| 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.
Literature
Documents
KIID 20/02/2020
KIID 20/02/2020
Prospectus 19/02/2020
Fund Factsheet B2B 01/2020
Shareholder Letters 18/09/2017
Articles of association 09/11/2015
Management Regulations 17/11/2016
Annual Report 31/12/2018
Fund Manager Comment 01/2020
Semi-Annual Report 30/06/2019
Subscription Form Institutional 02/2019
Subscription Form - Retail 02/2019
Operating Memorandum 27/02/2020
You are now leaving the AXA Investment Managers (AXA IM) Global website and will be redirected to another AXA IM site which may be subject to different Terms of Use
You are now leaving the AXA Investment Managers (AXA IM) Global website - AXA IM is not responsible for the content of external websites