AXA Rosenberg Eurobloc Equity Alpha Fund
Last NAV 12.9100 EUR as of 08/11/19
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.
Synthetic Risk & Reward Information scale
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?
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 indicator||Start date||End date|
|Performance table||Net performance||Performance indicator||Start date||End date|
|Risk table||Fund volatility||Benchmark volatility||Tracking error||Information ratio||Sharpe ratio||Beta||Alpha|
|First NAV date||31/05/00|
|Asset class||ROSENBERG EQUITIES|
|Legal authority||Central Bank of Ireland|
|Fund Manager||Cameron GRAY|
|Investment team||MT AXA Rosenberg 3|
|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 5,000 Minimum subsequent investment: EUR 2,000