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AXA WF Framlington Longevity Economy

ISIN LU0266013126

Last NAV 285.4200 EUR as of 16/12/19

Why this fund

Investing in the consequences and opportunities of extended life expectancy

Ageing populations are one of the greatest social, economic and political transformations of our time – and this longevity represents a multi-decade growth opportunity for investors. AXA Framlington Longevity Economy strategy seeks to give investors access to this long-term growth potential by investing in companies operating across four areas associated with the economic implications of longevity: Silver Spending, Wellness, Treatment and Senior Care.

Reasons to invest:

Diversified access to the growth potential of the longevity economy.
We aim to give investors diversified access to the companies that we believe are well-placed to benefit from the multi-decade implications of ageing populations, across Silver Spending, Wellness,Treatment and Senior Care.
Depth of exposure to the longevity economy.
To give investors meaningful insight to the drivers of equity returns, we offer high, quantifiable exposure to the Ageing & Lifestyle theme. We do this by analysing businesses’ revenue exposure to individual themes and sub-sectors, regardless of companies’ geographic listing or sector classification.
Active, long-term approach to the longevity economy.
We focus on sustainable growth by analysing how individual companies are preparing for, or capitalising on, ageing demographics. Our investment process is underpinned by Framlington Equities’ established fundamental stock selection philosophy which seeks above-average growth prospects over the long term.

Key figures

5x

The global 60+ cohort will grow more than 5 faster than the under-60 population from 2018-2030*
40-60 stocks

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

Regional and sector experts in Framlington Equities**

The Evolving Economy

Welcome to equity investing’s new reality.

Where does the longevity strategy invest?

Silver Spending

By 2030, two-thirds of over-60s’ consumption growth in developed markets will be spent across multiple industries dedicated to living well¹; beauty/aesthetics, personal care, fitness, housing, travel, leisure and entertainment.

Wellness

As medical costs increase, prevention is the most cost-effective way to contain spending. We invest across the wellness market, which covers preventative medicine, personalised treatments, nutrition, beauty and anti-ageing treatments.

Treatment

Ageing-related chronic illnesses (i.e. cancer, diabetes and cardiovascular disease) are affecting an increasingly large proportion of the overall population, who are also living with these conditions longer than previous generations as life expectancies rise. We invest in the companies seeking sustainable treatment solutions for the coming generations.

Senior Care

The increasing dependence of the rapidly-growing over-80 cohort is steadily influencing long-term care, and the markets for senior housing and specialist assisted living facilities, such as Memory Care that focuses on dementia patients, is forecast to expand in the coming years².

"Ageing populations are an irrevocable trend that will ultimately influence every facet of modern life. Companies are rapidly acknowledging that older consumers are more active, adventurous, and tech-savvy than they are typically given credit for. The challenge for investors now, is to identify those companies whose products and services are well placed to creating meaningful connection with their ageing customers."
Dani Saurymper, Portfolio Manager

Key risks:

All investment involves risk and capital is not guaranteed. AXA Framlington Longevity Economy 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. The Fund is also subject to the following additional risks:

Global investments risk: Investments in foreign securities, i.e. securities denominated in a currency different from the Sub-Fund’s Reference Currency, offer potential benefits not available from investments solely in securities denominated in the Sub-Fund’s Reference Currency. However, it also involves significant risks that are not typically associated with investing in securities denominated in the Sub-Fund’s Reference Currency. Indeed, foreign investments may be affected by movements of exchange rates, changes in laws or restrictions applicable to such investments and changes in exchange control regulations (e.g. currency blockage).

Investments in small and micro capitalisation universe risk: Investing in the small and micro capitalisation universe implies specificliquidity risk. The possible lack of a liquid market may inhibit the ability of the relevant Sub-Funds to purchase or sell such investment at an advantageous price. The NAV of the Sub-Funds may be adversely affected.

Investments in specific sectors or asset classes risk: Certain Sub-Funds concentrate their investments in certain asset classes (commodities, real estate) or in companies of certain sectors of the economy (such as healthcare, consumer staples and services, telecommunications or real estate) and are therefore subject to the risks associated with concentrating investments in such classes and sectors. This type of strategy may lead to adverse consequences when such asset classes or sectors become less valued or less liquid.

Source:
*UN, correct as at May 2018.
**Information about the staff teams and / or AXA Investment Managers is only informative. We do not guarantee the fact that staff remain employed by AXA Investment Managers or continue to exercise in the teams of AXA Investment Managers.

¹McKinsey Global Institute. Urban World: The Global Consumers to Watch, April 2016.
²Bank of America Merrill Lynch, ‘The Silver Economy – Global Ageing Primer’ May 2016.

Overview

Investment objectives

The Sub-Fund seeks to achieve long-term capital growth measured in USD by investing in equities and equity-related instruments issued by companies linked to the ageing of the population and increasing life expectancy worldwide.

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

Credit Risk: Risk that issuers of debt securities held in the Sub-Fund may default on their obligations or have their credit rating downgraded, resulting in a decrease in the Net Asset Value. Liquidity Risk: risk of low liquidity level in certain market conditions that might lead the Sub-Fund to face difficulties valuing, purchasing or selling all/part of its assets and resulting in potential impact on its net asset value. 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. Geopolitical Risk: investments in securities issued or listed in different countries may imply the application of different standards and regulations. Investments may be affected by movements of foreign exchange rates, changes in laws or restrictions applicable to such investments, changes in exchange control regulations or price volatility.

Investment horizon

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

Main documents

KIID product 13/11/2019

KIID product 14/10/2019

Fund manager comment : 30/11/19

Main changes to the Fund In November, we closed our position in Wright Medical after the company agreed to be acquired by Stryker. Similarly, we took profit from our position in Dexcom after strong performance. We initiated a position in sportswear apparel company, Columbia Sportswear. Fitness is a key part of our Wellness subtheme for Longevity and Columbia Sportswear has performed strongly over the long term, growing its top and bottom line faster than competitors. Factors affecting performance Global equities continued to rally in November and the MSCI AC World Index hit its highest point since early 2018 as market speculated on the potential for a China-US trade deal that would resolve the current conflict. The Fund outperformed its benchmark during the month. Positive performance was driven by Dexcom, which reported strong third quarter results and Wright Medical, which agreed to be acquired by Stryker for a greater than 40% premium to its unaffected share price. In contrast, negative performance was driven by Ventas, which continued to suffer from investor sentiment from reported weakness in its Senior Housing portfolio. Royal Caribbean contributed positively to performance as the stock continues to rally from the nadir reached in October. Current outlook Equity markets rallied in November on renewed hope for a China-US trade deal to end the current conflict. However, comments from President Trump after the period under review suggest it may take longer than the markets expect for an accord to be agreed. Multiple times over the last year we have seen the market rally on speculation of a deal, only to sell off when those hopes are dashed. We’ll leave second guessing the US president to the short-term speculators and focus our attention on assessing company fundamentals that will drive stock performance over the long term. Against a complex macroeconomic backdrop, fundamentals appear sound across multiple longevity-exposed sectors. But we are cognizant that stock price performance of different sectors has been highly correlated recently as all equities seem to be impacted by the same macroeconomic events regardless of their relevance to individual sectors. As such, we continue to monitor our portfolio companies for signs of weakness and we will most likely add aggressively if short term market fears create attractive opportunities to invest for the long term.

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

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Performance table

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Risk table

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Price table

Start date

End date

Price	Date	Portfolio AUM
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NAV

First NAV date	12/01/07

Administration

Fees

Ongoing Charges	2.01%

Fund facts

Currency	USD
Start date	12/01/07
Asset class	FRAMLINGTON EQUITIES
RI fund	False
Legal authority	Commission de Surveillance du Secteur Financier

Portfolio management

Fund Manager	Dani SAURYMPER
Co-manager	Peter HUGHES
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.