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.

Global Technology strategy - May 2021

  • 22 June 2021 (5 min read)

We have seen a positive trend with regards to Technology companies exceeding expectations

  • The Technology sector underperformed the broader equity index in May
  • Performance during the month was hampered by the ongoing growth into value rotation
  • Most of our companies have reported better-than-expected revenues and earnings

What’s happening?

During May, the MSCI World index declined by 1.1%1 .  The technology sector underperformed the broader equity index with the MSCI World Information Technology index falling 3.3%1 .  [All index returns provided in GBP].

In the US, some economic indicators triggered concerns that inflation could lead to earlier than expected interest rate rises, however the Federal Reserve continued to signal the transient nature of this inflation and remained committed to continue to provide supportive monetary stimulus. 

Portfolio positioning and performance

Our best performing investments during the month included Endava, an IT services business focused on digital and cloud transformation projects; NXP Semiconductor, the analog and mixed-signal semiconductor manufacturer and Viavi, the specialist in optical and thin-film technologies used in a variety of applications such as 5G networking and anti-counterfeit for banknotes.

Performance during the month was hampered by the ongoing growth into value rotation.  Stocks that performed poorly during the month included Everbridge, a provider of a Critical Events Management platform; Q2 Holding, a provider of cloud-based digital banking solutions; and Ocado, the UK grocery retailer and supplier of automation solutions to the grocery industry.

During May, we sold our position in Akamai, the provider of a content distribution network, that helps with the delivery of content and applications over the internet.


With first quarter earnings season almost over we have seen a positive trend with regards to companies exceeding expectations and providing a constructive commentary for the remainder of 2021 despite the uncertainties that still exist with regards to the ongoing impacts of the pandemic and timing of full economic recovery.

At the time of writing, for those companies in the MSCI World Index (representing the broader market) that have reported their first-quarter numbers, 69% have reported better-than-expected revenues and 75% reported better-than-expected earnings.  For the technology component of the same index, the results were 79% and 83%, respectively and for our strategy, these figures are 88% for both, respectively. (Source: Bloomberg)

As we emerge from the Covid19 pandemic, we are aware that equity markets may continue to be volatile and this could be the case until we get better insight with regards to the recovery of the global economy.  We believe our focus on identifying well managed businesses, with proven operating models and large opportunities still to address is the right approach to investing in the long-term growth opportunities present within the technology sector.

No assurance can be given that the Global Technology Strategy will be successful. Investors can lose some or all of their capital invested. The Global Technology strategy is subject to risks including; Equity; Smaller companies; Currency; Industry sector or region; Changing technology; Emerging markets; Liquidity.

  • Qmxvb21iZXJnIGFzIG9mIDMxLzA1LzIx
  • Qmxvb21iZXJnIGFzIG9mIDMxLzA1LzIx
Read the full article
Download article (261.91 KB)

Why consider investing in the technology sector?

At the heart of this evolution are innovative companies driving change across the entire economy – including how we work, shop, build relationships and find information

Find out more

Visit the fund centre

Find out more about our global technology strategy.

AXA Framlington Global Technology

The AXA Framlington Global Technology Fund is an unconstrained multi-cap strategy that seeks capital growth through investment in equities, with a focus on growth companies around the world focused on the research, design and development new technologies.

View funds

Related Articles


Investing in tech for sustainability

  • by Ashley Keet
  • 27 March 2024 (5 min read)

The rapid evolution of technology: Understanding the threats and opportunities

  • by AXA Investment Managers
  • 30 October 2023 (3 min read)

Global technology: Investing at the cutting edge

    Not for Retail distribution

    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.

    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. 

    Are you an IFA or other Professional Investor ?

    Are you a financial advisor, institutional, or other professional investor?

    This section is for professional investors only. You need to confirm that you have the required investment knowledge and experience to view this content. This includes understanding the risks associated with investment products, and any other required qualifications according to the rules of your jurisdiction.