AXA Framlington American Growth R

Invests mainly in large and midcap North American equities. The fund has a growth bias.

  • 754.70p
    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.

  • 754.90p
    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?

  • 5.25% 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!

  • 1.50%
    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).

  • 1.57%
    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.

  • 0.00%
    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 19 August 2003

The fund's objective is to achieve capital growth through investment principally in US, Canadian and Mexican large and medium capitalisation companies which, in the manager's opinion, show above average profitability, management quality and growth.

Fund summary

Sector North America
Structure UNIT TRUST
Launched December, 1992
Size £562m
Yield 0.00%
Charging basis Income
Dividends paid 30 Apr

Charges

Standard initial charge 5.25%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.57%

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Investment process

The fund’s investment universe is primarily that of the Russell 1000 Growth index. The manager’s initial screen of this universe looks for companies with the following characteristics: - Growth. This should be secular, and reliant on top-line growth rather than cost-cutting or restructuring. - Proven management execution ability – the fund manager believes this is of paramount importance for growth companies. - Innovators in their sector, with the ability to change consumer behaviour. The universe is also screened based on market cap and liquidity. The stocks identified are then researched in more depth. This includes company meetings and visits, interaction with AXA Framlington’s global sector specialists, and detailed financial analysis. Position sizes in the final portfolio are determined on a risk/return basis, taking account of degree of conviction, potential upside, risk guidelines and macro/market outlook. Sector and country allocations are largely derived from stock selection.

The manager has a successful long term track record, though investors should note he has a growth bias so will perform better when such stocks are in favour. His record has also been volatile in the past - he outperformed strongly during the technology boom in the late 1990s, but suffered subsequently.

Manager research

Average monthly relative returns

  • 14/15 0.17%
  • 15/16 -0.62%
  • 16/17 -0.08%
  • 17/18 1.04%
  • 18/19 -0.48%

Bestinvest MRI

  • 3 years 0.16%
  • 5 years 0.01%
  • Career 0.13%
  • 3 years 74.50%
  • 5 years 59.90%
  • Career 92.90%

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

Stephen Kelly

Born in 1969, Kelly graduated with an Economics degree from Exeter University in 1990. He joined Olliff & Partners as a trainee in the equity research department where he covered the UK paper and packaging sector. He moved to Capel Cure Myers in 1992 where he was promoted to fund manager from assistant in 1995. In 1997 he joined AXA Framlington as a fund manager on the US desk, responsible for US growth funds.

Track record

Stephen Kelly has 22.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.13%. During the worst period of relative performance (from September 2000 - December 2016) there was a decline of 36% relative to the index. The worst absolute loss has been 60%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 93%.

Periods of worst performance

Absolute -60.00% (August 2000 - January 2003)
Relative -36.00% (September 2000 - December 2016)

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

7.73% Microsoft Corp
5.8% Amazon.com Inc
4.89% Alphabet Inc
4.71% Apple Inc
3.28% Facebook Inc
2.83% Visa Inc
2.09% Unitedhealth Group Inc
2.07% Salesforce.com Inc
1.75% Dexcom Inc
1.59% Hexcel Corp
Source: Trustnet

Sector breakdown

Technology 35.00%
Health Care 20.00%
Consumer Discretionary 20.00%
Financial Services 9.00%
Producer Durables 5.00%
Money Market 4.00%
Materials & Processing 3.00%
Energy 3.00%
Consumer Staples 1.00%

Portfolio

65-75 stocks.

Constraints

Typical max 2% active share.

Key Investor Information - Income

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Key Investor Information - Accumulation

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