AXA Distribution Z

Around 55% UK equities, the balance in index linked and conventional gilts.

  • 136.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 253.70p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.76%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 2.60%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 13 December 2019, fund data last updated 02 March 2016

The fund aims to achieve growing income with some prospects for capital growth over the medium to long term. To achieve this around 55% of the fund will be invested in equities, predominantly dividend paying FTSE 350 stocks. The remainder will be invested in index linked gilts (35%), other government bonds (7%) and cash (3%). The allocation between different asset classes is not expected to change materially over the cycle.

Fund summary

Sector Mixed Investment 20-60% Shares
Structure OEIC
Launched May, 1994
Size £736m
Yield 2.60%
Charging basis Capital
Dividends paid 31 Jan, 30 Apr, 31 Jul, 31 Oct

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.76%

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Investment process

The investment process begins with top-down macro research and analysis, with input from the in-house Research & Investment Strategy team. This determines the strategic asset allocation, though this does not typically change much over the cycle (+/- 5%). The lead portfolio manager delegates the fixed income carve-out to David Dyer, the fixed income portfolio manager. The equity portion of the portfolio is managed following AXA’s Long-Term Added Value (LTAV) approach. This involves screening the investment universe with the help of the UK equity analysts, aiming to find companies that have long term robust business models and the capability of providing a steady, rising dividend stream over the economic cycle. The manager typically looks for companies which have stable, sustainable and reliable revenue streams, often those with high barriers to entry. Having filtered the universe, the team then carry out fundamental analysis on company valuations.

The fund makes use of index-linked (inflation protected) securities to a much greater degree than most other funds within the peer group. This has resulted in lower levels of volatility relative to peer group funds, which tend to focus more on corporate bonds for fixed income exposure. However, overall income distribution levels should be expected to be lower. Following the departure of manager Richard Marwood we assigned a one star (switch) rating to the fund in March 2016.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 0.08%
  • 17/18 -0.11%
  • 18/19 -0.10%

Bestinvest MRI

  • 3 years -0.05%
  • 5 years 0.00%
  • Career -0.03%
  • 3 years 55.60%
  • 5 years 0.00%
  • Career 60.30%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Jim Stride / Jamie Forbes-Wilson

Stride graduated from the London School of Economics with a BSc (Hons) in Economics having specialised in Accounting and Finance. He was appointed Managing Director of AXA in 1997 and since 2000 has also been Head of Insurance. He joined the company in 1981 as a fund manager, having worked as a bank analyst with Panmure Gordon & Co. for two years. His career began in 1976 as an analyst with the Post Office pension fund. Forbes-Wilson joined AXA in 2003 as an investment manager responsible for charity, pension and private client portfolios. He began his career in 1996 as a graduate trainee with Wise Speke, a regional private client stockbroking firm. The company subsequently became part of Brewin Dolphin, where he worked as a private client portfolio manager. He graduated from Exeter University in 1996 with a BA (Hons) degree in Economic History and Politics. He is a Fellow of the Securities Institute (FSI).

Track record

Jim Stride / Jamie Forbes-Wilson has 3.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.03%. During the worst period of relative performance (from January 2017 - December 2018) there was a decline of 4% relative to the index. The worst absolute loss has been 8%.

Periods of worst performance

Absolute -8.00% (July 2018 - December 2018)
Relative -4.00% (January 2017 - December 2018)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 30 August 2019

10% Uk Gilt Inflation Linked 2.5% 04/16/2020
3.9% Glaxosmithkline
3.6% Hm Treasury United Kingdom Dmo 0.125% Idx Gilt 22/03/24 Gbp0.01
3.2% Bp
3.1% Royal Dutch Shell
2.6% Hm Treasury United Kingdom Dmo 0.125% Idx Lkd Gilt 22/11/19 Gbp0.01
2.2% Rio Tinto
2.2% Hm Treasury United Kingdom Dmo 2.5% Idx Lkd Gilt 17/07/24 Gbp0.01
2% Prudential Plc
2% Hm Treasury United Kingdom Dmo 1.875% Idx Lkd Gilt 22/11/22 Gbp
Source: Trustnet

Sector breakdown

AA 97.00%
Money Market 3.00%

Portfolio

Around 150 equities and 50 bonds. Typical asset mix is: UK Equities - 55%; Index Linked Gilts - 35%; Fixed Interest (inc cash) - 10%.

Constraints

Risk is controlled through tracking error, or variability against benchmark.

Key Investor Information - Income

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Key Investor Information - Accumulation

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