Warning: members of the public are being contacted by people claiming to work for AXA Investment Managers UK Limited.  Find out more information and what to do by clicking here.

Equities

Global Thematics strategy - September 2021

  • 02 November 2021
  • 5min read

The strategy remains well positioned to benefit from the secular shifts we are witnessing globally

  • Equity markets witnessed some volatility towards the end of the month
  • Several holdings which performed best in August have been affected over the month
  • ‘Ageing & Lifestyle’ was the best performing theme

What’s happening?

Global equity markets fell in September, and we saw a reversion to value outperforming growth towards the end of the month. US macroeconomic data has remained strong with positive employment and payroll data. Inflationary pressure continues to build, in part due to rising fuel prices. Whilst inflation has continued to pick up in the near term, the Federal Reserve has reiterated that inflation is likely to moderate and inflation expectations are currently “well anchored”.

The European economy continues its path to normalisation and is posting strengthening macroeconomic data. Despite a pick-up in inflation, the ECB1 remains supportive. The outlook for growth in many Emerging Markets is mixed, with some areas suffering COVID disruption and others benefitted from the strength in demand for exports.  All major economies continue to suffer disruption associated with transport and logistics.

We retain conviction in the structural growth trends which support the five key themes within the Global Thematics.

Portfolio positioning and performance

The strategy underperformed the broader equity index (MSCI All Country World) in September, with a slightly negative contribution from all themes as many of the holdings which performed best in August gave back some of their outperformance.

This was most notable in ‘Connected Consumer’ where Alphabet, Adobe and PayPal all showed weakness.

In ‘Clean tech’, NextEra, a US renewable energy provider, also underperformed following a period of strength.

In ‘Automation’, Trimble was also amongst the underperformers, following strength the prior month.

‘Ageing & Lifestyle’ was the best performing theme as holdings including Thermo Fisher, Hoya and DexCom contributed positively.

During September, we initiated a holding in National Grid, an electricity transmission business with assets in the UK and the US, exposed to the need for a smarter and more interconnected electricity grid as we add renewables and continue to electrify aspects of the economy.

Outlook

Macroeconomic conditions are broadly supportive and the trends underpinning the Global Thematics continue to strengthen. Industrial activity and strong order books for industrial robotics companies highlight the positive outlook for Automation, the experience of the recent pandemic serve to underscore the importance of managing health within the context of an aging population. Consumer and corporate demand for Digitalisation and the Energy Transition continue to build. 

We retain the view that high quality management teams, operating businesses with a sustainable competitive advantage in their markets and with the benefit of secular tailwinds are well placed to navigate the current disruption.  The strategy is therefore well positioned to benefit from the secular shifts we are witnessing globally.

No assurance can be given that the Global Thematics Strategy will be successful. Investors can lose some or all of their capital invested. The Global Thematics strategy is subject to risks including Equity; Emerging markets; Currency; Global investments; Investments in small and/or micro capitalisation universe; ESG.

  • European Central Bank
Read the full article
Download article (230.67 KB)

Have our latest insights delivered straight to your inbox

SUBSCRIBE NOW
Subscribe to updates.

Related Articles

Fixed Income

Global Short Duration strategy - December 2021

  • 17 January 2022
  • 5min read
Fixed Income

Sterling Credit Short Duration strategy - December 2021

  • 17 January 2022
  • 5min read
Fixed Income

AXA Global Strategic Bond Fund - December 2021

  • 10 January 2022
  • 5min read

    Disclaimer

    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.

    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. 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.

    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities. The strategies discussed in this document may not be available in your jurisdiction.

    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.

    Please note that the management company reserves the right, at any time, to no longer market the product(s) mentioned in this communication in an European Union country by notification to its authority of supervision in accordance with European passport rules. In the event of dissatisfaction with the products or services, you have the right to make a complaint either with the marketer or directly with the management company (more information on our complaints policy available in English here). You also have the right to take legal or extra-judicial action at any time if you reside in one of the countries of the European Union. The European online dispute resolution platform allows you to enter a complaint form (by clicking here) and informs you, depending on your jurisdiction, about your means of redress (by clicking here).

    Issued in the U.K. 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: 22 Bishopsgate, London, EC2N 4BQ. In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.

    Risk Warning

    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.