AXA IM: All China fund added to thematic equity range

January 22, 2020

The fund, which is domiciled in Luxembourg, can invest in A-Shares listed on the Shanghai and Shenzhen stock exchanges traded via the Hong-Kong Stock Connect, H-shares listed in Hong Kong as well as Chinese companies that are listed globally. The fund is currently registered and available to professional and retail investors in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden and Switzerland.

Utilizing a fundamental, bottom-up investment approach, Chinese companies will be selected through the lens of five long term investment trends which form the basis of AXA IM Framlington Equities’ evolving economy thematic fund range:

• Ageing and Lifestyle – the changing ways that people are living across the globe as life expectancies rise.
• Connected Consumer – technological advancements that enable companies to engage their customers more deeply in a digital economy.
• Automation – applications of robotics and automation to improve or optimize processes across various industries.
• CleanTech – low-carbon economy solutions and sustainable resources management.
• Transitioning Societies – economic inclusion and changing consumption patterns of the growing global middle class, particularly in the developing world.

The fund will be managed by William Chuang, who is based in Hong Kong. William has over 18 years of investment experience, and currently oversees the Greater China region research for the AXA IM Framlington Equities investment platform.

In addition to the launch, AXA IM has hired Natalia Mu as an Investment Specialist to provide further expertise in the region. She works closely with William and the AXA IM Framlington Equities thematics portfolio managers and assists sales teams across Asia. Asia is one of the key markets for AXA IM’s development strategy, therefore Natalia’s appointment builds on the recent strengthening of AXA IM’s team in Asia with the hires of several sales people.

William Chuang, portfolio manager, commented on why an All China fund is a relevant addition to AXA IM’s thematic range:

“We see that the Chinese equity market offers a diverse and attractive set of opportunities to investors. Our goal is to tap into those opportunities with a robust investment approach and the flexibility to invest across Chinese onshore and offshore equities. We have been researching Chinese companies for many years, we felt this was the optimum time to launch an All China fund as the Chinese A-share market attracts greater interest following inclusion into various indices and importantly, there are plenty of high quality companies which are benefitting from structural growth drivers including rising consumption, technology innovation and shifting demographics.”

Matthew Lovatt, Global Head of AXA IM Framlington Equities, added:

“We are convinced that the secular themes we have identified will accelerate and evolve over the next decade and believe investors should be invested in active strategies that aim to capture those opportunities. It is only natural then that we look at applying these themes to Chinese markets which present some very compelling opportunities; especially given the size of the economy and that its capital markets are opening up to foreign investment. China is a key strategic focus for AXA IM, and the launch of the fund is a logical progression of the thematic range.”

Risks

The value of investments may rise as well as fall and investors may not get back the full amount invested.

Counterparty Risk: Risk of bankruptcy, insolvency, or payment or delivery failure of any of the Sub-Fund's counterparties, leading to a payment or delivery default.

Impact of any techniques such as derivatives: Certain management strategies involve specific risks, such as liquidity risk, credit risk, counterparty risk, legal risk, valuation risk, operational risk, and risks related to the underlying assets. The use of such strategies may also involve leverage, which may increase the effect of market movements on the Sub-Fund and may result in significant risk of losses.

Geopolitical Risk: investments in securities issued or listed in different countries may imply the application of different standards and regulations. Investments may be affected by movements of foreign exchange rates, changes in laws or restrictions applicable to such investments, changes in exchange control regulations or price volatility.