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Asset class news

AXA IM Renames Equity Income Fund to Reflect Wider Investment Universe

  • 18 September 2019

AXA Investment Managers (AXA IM) today announces the AXA Framlington Blue Chip Equity Income Fund has been renamed the AXA Framlington UK Equity Income Fund  to better reflect its new investment objectives and its ability to invest in small and mid cap companies.

Effective as of 4 September, the renamed AXA Framlington UK Equity Income Fund, will continue to aim to produce higher than average long-term growth of income and capital, but also target a yield of distributable income in excess of 100% of the FTSE All Share on a rolling three-year basis, and in excess of 90% on an annual basis, maintaining its classification within the Investment Association’s UK Equity Income sector.

In addition to the new name, the fund’s objectives and investment universe will also change, significantly expanding the available number of stocks the fund can invest in. The fund will continue to target companies with high sustainable barriers to entry within their industry.

Simon Young, manager of AXA Framlington UK Equity Income Fund, said: “Investing in companies that can thrive whatever the circumstances remains the fund’s key focus. We seek to invest in companies with high barriers to entry which insulates them from competition and allow them to navigate challenging economic circumstances. We believe these companies, allied to sound balance sheets and good cashflows will be able to grow their dividends ahead of inflation over the longer term.”

The strategy incorporates four distinct themes – companies that are the lowest cost providers in their industry, companies that have high levels of intellectual property such as patents, companies that have high levels of repeat sales, and companies with excellent distribution networks.

The fund has enjoyed strong performance under manager Simon Young since he joined AXA IM in September last year. As at 30 August the fund has returned 13.43% year-to-date; 13.80% and 23.85% over 3 and 5 years respectively.1

Commenting on the announcement Rob Bailey, Head of UK Wholesale Distribution, said: “The UK is a key market for AXA Investment Managers and we are committed to growing and developing our UK Equities arm.  The renaming of the fund to the AXA Framlington UK Equity Income fund allows Simon and the team greater flexibility to invest in the best equity income opportunities available across the full spectrum of UK listed companies. Performance has been strong since Simon’s appointment and we continue to see a positive outlook for UK equities.”


    All data sourced by AXA IM as at 18 September 2019.

    Performance figures for AXA Framlington UK Equity Income Fund Z GBP Acc as at 30/08/2019

    Performance table YTD 1Y 2Y 3Y 4Y 5Y
    Net cumulative performance 13.43% 1.34% 3.88% 13.80% 24.82% 23.85%
    Reference index 11.31% 0.63% 5.33% 20.20% 34.39% 30.88%
    Start date 31/12/2018 31/08/2018 31/08/2017 31/08/2016 31/08/2015 31/08/2014
    End date 30/08/2019 30/08/2019 30/08/2019 30/08/2019 30/08/2019 30/08/2019

    Past performance is not a guide to future performance. The value of investments and the income from them can fluctuate and investors may not get back the amount originally invested. Changes in exchange rates will affect the value of investments made overseas. Investments in newer markets and smaller companies offer the possibility of higher returns but may also involve a higher degree of risk.

    Concentration Risk: as this Fund may, from time to time, hold relatively few investments, it may be subject to greater fluctuations in value than a fund holding a larger number of investments.

    This communication is for informational purposes only and does not 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 a solicitation or as investment, legal or tax advice. It may detail proposed concepts and structures which are correct as of [date] but which are subject to change. There is no guarantee that the product will be launched. All investment involves risks, including the loss of capital.

    This communication refers to a product that has not been launched yet, so its characteristics are subject to change. In case of any conflict between this communication and the offering documents, the latter would prevail. The products or strategies discussed in this document may not be registered nor available in all jurisdictions or for certain investors.

    AXA Investment Managers UK Limited is authorized and regulated by the Financial Conduct Authority. This press release is as dated. This does not constitute a Financial Promotion as defined by the Financial Conduct Authority and is for information purposes only. The content herein is not suitable for retail clients. No financial decisions should be made on the basis of the information provided. Strategies mentioned may not be registered or available in your jurisdiction. This communication is not an offer to buy or sell any investments, products or services and should not be considered as a solicitation or as investment, legal or tax advice.

    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.