Investing in Biotechnology
Investing in the innovation engine of pharmaceuticals and medicine
Our expertise in numbers
Overview
For decades large-cap pharmaceutical companies dominated sales of medical treatments, but today, most of the top-10 selling drugs globally are derived from biotechnology. Biotechnology sits at the cutting edge of the next medical breakthroughs and AXA IM brings nearly 30 year’s specialist investing experience to one of the most exciting subsectors in healthcare, backed-up by its extensive worldwide resources.
Innovation creates opportunities
Biotechnology is the use of living organisms and molecular biology to produce products, typically in the healthcare sector. A surge in the understanding of the human body’s own processes has led to the development of ground-breaking treatments in areas such as obesity, dementia and cancer. Conditions that were previously seen as intractable or demanding a regime of linked therapies are succumbing to elegant, tailored treatments being developed in breakthrough moments.
Combining experience and expertise
AXA IM has a long history of successfully running dedicated healthcare franchises, having established our biotech strategy in 2001. The healthcare team not only has strong, science-focused academic background but also brings a wealth of dedicated healthcare and biotech investing experience. They are further supported by the broader global equities team, which provides global analytical and research support.
Rigorous investment process
Our biotech strategy is based on an unconstrained, high conviction, growth approach underpinned by a rigorous, bottom-up selection process. We invest across the full spectrum of market capitalisation with a high preference towards small and mid-cap companies, which are seen as a rich source of added value. Importantly, we choose companies that are led by high-quality management teams and offer a high probability of clinical, regulatory, and commercial success.
The AXA Framlington Biotech Fund
The AXA Framlington Biotech Fund invests in shares of listed companies, principally in the biotechnology, genomic and medical research industry. It can invest in companies of any size, based anywhere in the world, although the portfolio tends to be biased towards the US where most biotechnology companies are based.
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Why AXA Framlington Biotechnology strategy?
Actively managed, multi-cap unconstrained
Biotech-concentrated investment approach with a global perspective.
Scientific expertise and focus
To find the most exciting investment opportunities in a sector where mispricing and price inefficiencies exist.
Risk-aware portfolio construction
Balancing defensive commercial franchise growth with smaller capitalisation innovation opportunities.
Integrated ESG approach
ESG risk is assessed as part of the investment process, reducing exposure to related risk factors.
It’s a privilege to witness some of the tremendous progress that we are making in therapeutics. We, as investors, aim to support the industry through capital markets while generating healthy returns for our stakeholders.
Important information
The value of investments may fall as well as rise and you may not get back the full amount invested.
KEY RISK FACTORS
(The list below of risk factors is not exhaustive. Please refer to the prospectus & KID/KIID supplement for full product details and complete information on the risks).
Equity risk: The value of shares in which the Fund invests fluctuate pursuant to market expectations. The value of such shares will go up and down and equity markets have historically been more volatile than fixed interest markets. Should the price of shares in which the Fund has invested fall, the Net Asset Value of the Fund will also fall. Funds investing in shares are generally more volatile than funds investing in bonds or a combination of shares and bonds, but may also achieve greater returns.
Smaller companies risk: Investments in smaller companies offers the possibility of higher return but also involve a higher degree of risk than investment in well established, larger companies. The shares of smaller companies can be more volatile which may lead to increased volatility in the Price of the Units of a Fund.
Currency risk: The fund may hold investments denominated in currencies other than the base currency of the fund. As a result, exchange rate movements may cause the value of investments (and any income received from them) to fall or rise effecting the fund’s value.
Industry sector or region risk: The Fund may invest in a portfolio of shares which is focused towards one particular market sector or geographic region. This focus may result in higher risk when compared to a Fund that has spread or diversified investments more broadly. Some sectors and regions can experience rapid and extreme price movements when compared with movements in securities markets generally. Investors should note that Funds with a specific focus should be considered for investment as part of a wider diversified portfolio.
Changing technology risk: The Fund may invest in companies which are particularly vulnerable to rapidly changing technology and a relatively high risk of obsolescence caused by scientific and technological advances.
Disclaimer
This promotional communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.
Before making an investment, investors should read the relevant Prospectus and the Key Investor Information Document / scheme documents, which provide full product details including investment charges and risks. The information contained herein is not a substitute for those documents or for professional external advice.
The products or strategies discussed in this document may not be registered nor available in your jurisdiction. Please check the countries of registration with the asset manager, or on the web site https://www.axa-im.com/en/registration-map, where a fund registration map is available. In particular units of the funds may not be offered, sold or delivered to U.S. Persons within the meaning of Regulation S of the U.S. Securities Act of 1933. The tax treatment relating to the holding, acquisition or disposal of shares or units in the fund depends on each investor’s tax status or treatment and may be subject to change. Any potential investor is strongly encouraged to seek advice from its own tax advisors.
AXA Framlington Biotechnology is a sub-fund of AXA World Funds. AXA WORLD FUNDS ‘s registered office is 49, avenue J.F Kennedy L-1885 Luxembourg. The Company is registered under the number B. 63.116 at the “Registre de Commerce et des Sociétés” The Company is a Luxembourg SICAV UCITS IV approved by the CSSF and managed by AXA Funds Management, a société anonyme organized under the laws of Luxembourg with the Luxembourg Register Number B 32 223RC, and whose registered office is located at 49, Avenue J.F. Kennedy L-1885 Luxembourg.
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. References to league tables and awards are not an indicator of future performance or places in league tables or awards and should not be construed as an endorsement of any AXA IM company or their products or services. Please refer to the websites of the sponsors/issuers for information regarding the criteria on which the awards/ratings are based. 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.
Issued in the UK 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.