AXA Framlington Emerging Markets R

Invests in companies headquartered in or operating in developing countries

  • 256.80p
    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.

  • 280.50p
    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).

  • 1.63%
    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.

  • 0.10%
    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 11 December 2019

This fund invests in companies listed in developing economies in regions such as Asia, Latin America, Eastern Europe and Africa with the aim of generating returns primarily through capital appreciation. The manager places a strong focus on stock selection and looks for companies making efficient use of their assets to deliver strong and consistent returns. Taking a wider perspective, the manager favours taking active bets on sectors in the market rather than specific countries.

Fund summary

Sector Global Emerging Markets
Structure UNIT TRUST
Launched December, 1992
Size £87m
Yield 0.10%
Charging basis Income
Dividends paid 31 Jan

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 1.63%

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Investment process

The manager favours bottom-up stock selection within a macro-driven framework based on sectors rather than countries. Sustainable return on capital is the key to long-term outperformance – companies can grow earnings by buying capital, but this can lead to diminishing returns. Position sizing is based on analysis of risk, both specifically from the stock, and how the stock position affects the rest of the portfolio.

This manager moved over to take charge of the fund in December 2010 and built a new team from scratch. The fund differentiates itself from many of its peers by taking an active view on sectors rather than countries, and the manager takes a longer-term view, foregoing momentum trades for growing and sustainable earnings.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 0.03%
  • 16/17 -0.36%
  • 17/18 -0.49%
  • 18/19 0.73%

Bestinvest MRI

  • 3 years -0.04%
  • 5 years 0.00%
  • Career 0.09%
  • 3 years 54.80%
  • 5 years 0.00%
  • Career 76.70%

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

Ian Smith / Paul Birchenough

Smith joined AXA IM in 2012 from Matrix Group, where he was an investment analyst responsible for covering the Financials sector within Asia. Prior to that he worked for Nevsky Capital where he was responsible for covering the Financials sector within Latin America and Asia. Smith has a BA in Economics and Politics from Durham University and gained ACA qualification in 2003. Birchenough joined AXA IM in 2011 from Nevsky Capital, where he specialised in Latin America. Prior to joining Nevsky Capital in early 2010, he was an Associate within the Corporate Finance department at KPMG, advising on the European TMT sector. Birchenough has a BSc (Hons) in Mathematics from Nottingham University and is an Associate Chartered Accountant.

Track record

Ian Smith / Paul Birchenough has 4.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.09%. During the worst period of relative performance (from May 2016 - October 2018) there was a decline of 15% relative to the index. The worst absolute loss has been 18%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 77%.

Periods of worst performance

Absolute -18.00% (January 2018 - October 2018)
Relative -15.00% (May 2016 - October 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 31 July 2019

7.15% Tencent Hldgs Ltd
6.71% Alibaba Group Hldg Ltd
6.47% Taiwan Semiconductor Co
4.32% New Oriental Education & Technology
3.88% Unilever Nv
3.09% Godrej Consumer Products
2.84% Foshan Haitian Flavouring And Food
2.71% Marico
2.57% Ambev Sa
2.4% Ping An Insurance(Gr)Co Of China
Source: Trustnet

Sector breakdown

Financials 27.00%
Consumer Staples 24.00%
Consumer Discretionary 18.00%
Communications 11.00%
Information Technology 6.00%
Health Care 4.00%
Real Estate 4.00%
Money Market 3.00%
Industrials 2.00%
Materials 2.00%

Portfolio

60-100 stocks investing in emerging market across the size spectrum - distribution is driven by stock selection.

Constraints

+/-4% maximum stock position +/-10% country allocation +/- 7.5% sector allocation

Key Investor Information - Income

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Key Investor Information - Accumulation

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