AXA Rosenberg Eurobloc Equity Alpha Fund

ISIN IE0008366365

Last NAV 20.1400 EUR as of 08/11/19

Overview

Investment objectives

The aim of the Sub-Fund is to provide long-term capital growth above that of the MSCI EMU Index on a rolling three year basis.The MSCI EMU Index is designed to measure the performance of the shares of companies listed on stock exchanges of developed countries within the Eurozone. The index's composition is available on www.msci.com.

Risk

Synthetic Risk & Reward Information scale

1 2 3 4 5 SRRI Value 6 7

The risk category is calculated using historical performance data and may not be a reliable indicator of the Sub-Fund's future risk profile. The risk category shown is not guaranteed and may shift over time. The lowest category does not mean risk free.

Why is this Fund in this category?

The capital of the Sub-Fund is not guaranteed. The Sub-Fund is invested in financial markets and uses techniques and instruments which may be subject to sudden and significant variation, which may result in substantial gains or losses.

Additional risks

Counterparty Risk: failure by any counterparty to a transaction (e.g. derivatives) with the Sub-Fund to meet its obligations may adversely affect the value of the fund. The Sub-Fund may receive assets from the counterparty to protect against any such adverse effect but there is a risk that the value of such assets at the time of the failure would be insufficient to cover the loss to the Sub-Fund. Geopolitical Risk: investments issued or traded on markets in different countries may involve the application of different standards and rules (including local tax policies and restrictions on investments and movement of currency), which may be subject to change. The Sub-Fund's value may therefore be impacted by those standards/rules (and any changes to them) as well as the political and economic circumstances of the country/region in which the Sub-Fund is invested. Risk linked to Method and Model: attention is drawn to the fact that the Sub-Fund's strategy is based on the utilisation of a proprietary share selection model. The effectiveness of the model is not guaranteed and the utilisation of the model may not result in the investment objective being met. Operational Risk: the Sub-Fund is subject to the risk of loss resulting from inadequate or failed internal processes, people or systems or those of third parties such as those responsible for the custody of the Sub-Fund's assets.

Investment horizon

This Fund may not be suitable for investors who plan to withdraw their contribution within 5 years.

Fund manager comment : 30/09/19

Third quarter 2019 Benchmark: MSCI EMU (TR Net) European equities rose by 2.6% in euro terms over the third quarter of 2019, as measured by the benchmark MSCI EMU index. Markets were particularly weak in August as a global sell-off ensued from rising US-China trade tensions and fears of a global slowdown. However, September saw a marked recovery as the European Central Bank (ECB) announced a fresh stimulus package including the purchase of €20 billion of bonds per month starting in November, and cut the main deposit rate for commercial banks to -0.5%. In the UK, Prime Minister Boris Johnson announced the suspension of parliament for five weeks beginning in September, which increased fears of a ‘no deal’ scenario; however, this was deemed unlawful by the UK Supreme Court and UK stocks posted modest gains for the quarter. Economic data showed Eurozone GDP had managed to grow 0.2% in the second quarter, however markets fell victim to negative sentiment as Germany – the region’s largest economy – actually contracted 0.1% over the same period, marking a technical recession. Indicators such as business and investor sentiment and industrial goods orders all deteriorated over the period, leading the ECB to lower its forecast for economic growth and inflation for the whole of the Eurozone. Traditional defensive sectors outperformed with utilities and real estate the best performing, followed by consumer staples. Energy was the worst-performing sector and lagged by some margin. From a factor perspective, value made a strong recovery in September as momentum crashed out of favour; the two having become increasingly negatively correlated. Higher yielding and lower volatility stocks also outperformed given the market environment, whereas smaller companies struggled. Against this backdrop, the Fund rose in value over the quarter but underperformed its benchmark index net of fees and expenses applicable to the A EUR share class. Underperformance was driven by stock selection and industry allocations, however an unfavourable risk profile relative-to-benchmark also detracted – in particular the tilt to smaller companies, which underperformed their larger peers. Industry-wise, the Fund’s exposure to the various parts of the technology sector was unrewarded. Most unhelpful was the overweight to software stocks, which were sold-off in August when investors took profits. The Fund’s off-benchmark holding in Software AG was among the biggest detractors as a result. IT hardware stocks fared much better over the quarter, however the Fund was underweight here, further compounding relative underperformance. A below-benchmark position in ASML Holding, supplier to the semiconductor industry, was among the biggest detractors for the quarter. Conversely, the overweight in its parent company ASM International provided the top contribution from an individual stock; its shares bounced after it reported a 25% rise in second quarter revenue and announced a share buyback plan. However, picking within the technology sector overall was weak and dragged total contributions from stock selection into negative territory. Elsewhere, difficult trading conditions for steel producer Salzgitter AG also weighed on Fund returns, as it continued to suffer from cooling demand amid increasing signs of a global economic slowdown and received a ‘sell’ rating from JP Morgan at the start of the quarter.

Performance

Performance chart

Period

1M
3M
6M
1Y
3Y
5Y
8Y
10Y
YTD
Since launch

Start date

End date

Benchmark

Performance indicator Start date End date
- - -

Performance table

End date

Performance table Net performance Performance indicator  Start date End date
1M - - - -
QTD - - - -
3M - - - -
6M - - - -
YTD - - - -
1Y - - - -
2Y - - - -
3Y - - - -
4Y - - - -
5Y - - - -
8Y - - - -
10Y - - - -
Since launch - - - -

Risk table

End date

Risk table Fund volatility Benchmark volatility Tracking error Information ratio Sharpe ratio Beta Alpha
1M - - - - - - -
QTD - - - - - - -
3M - - - - - - -
6M - - - - - - -
YTD - - - - - - -
1Y - - - - - - -
3Y - - - - - - -
5Y - - - - - - -
8Y - - - - - - -
10Y - - - - - - -
Since launch - - - - - - -

Price table

Start date

End date

Price Date Portfolio AUM
- - -

NAV

First NAV date 31/05/00

Administration

Distribution country

Distribution countries
Austria
Belgium
Denmark
Finland
France
Germany
Ireland
Italy
Luxembourg
Netherlands
Norway
Singapore
Spain
Sweden
Switzerland
United Kingdom

Fees

Ongoing Charges 0.84%

Fund facts

Currency EUR
Start date 30/09/99
Asset class ROSENBERG EQUITIES
RI fund False
Legal authority Central Bank of Ireland

Portfolio management

Fund Manager Cameron GRAY
Investment team MT AXA Rosenberg 3

Structure

Investment area Euro
Legal form Unit Trust

Subscription and redemption

The subscription, conversion or redemption orders must be received by the Registrar and Transfer Agent on any Dealing (Business) Day no later than 1 p.m. Irish time. Orders will be processed at the Net Asset Value calculated for that Dealing Day.Please note that there may be additional processing time if your order is placed via intermediaries such as platforms, financial advisors or distributors.The Net Asset Value of this Sub-Fund is calculated on a daily basis. Minimum initial investment: EUR 100,000 Minimum subsequent investment: EUR 5,000

Literature