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AXA Rosenberg Eurobloc Equity Alpha Fund

ISIN IE0004352823

Last NAV 13.6400 EUR as of 18/02/20

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 : 31/12/19

An apparent resolution to the US-China trade conflict that had hampered sentiment for much of 2019 helped lift markets in the fourth quarter of the year. The increasing optimism, coupled with the Conservative Party’s UK general election victory in December – which reduced uncertainty around Brexit – boosted Eurobloc equities by 5.3% in euro terms (as measured by the benchmark MSCI EMU Index). At her first policy meeting, new European Central Bank president Christine Lagarde reassured investors by suggesting that the current ultra-low monetary stance would be maintained in the medium term. Meanwhile, the latest Eurozone GDP growth figures came in ahead of expectations, although this did not stop the International Monetary Fund from downgrading its GDP forecasts. Sector-wise, traditional defensives (with the exception of healthcare) underperformed the broader market in a risk-on environment. Pro-cyclical sectors outperformed, with industrials and technology stocks leading the charge. Factor-wise, Quality and Value outperformed while Momentum underperformed given its alignment with lower volatility stocks in what became a risk-on environment. Against this backdrop, the Fund outperformed its benchmark index, net of fees and expenses applicable to the A EUR share class. Favourable style exposures, industry positioning and stock selection in the portfolio all contributed to excess returns. Style-wise, the bias in the Fund’s holdings towards smaller companies relative to the benchmark was well-rewarded as they outperformed their larger peers over the quarter. The Fund’s exposure to the Quality and Value factors also helped as investors rewarded companies with strong earnings growth and with lower levels of debt. With the energy sector lagging the broader market, the Fund’s underweight allocation to integrated oil stocks provided a positive contribution to relative returns. The overweight to the IT sector as a whole (and to software companies in particular) was also beneficial as tech stocks were again bolstered by positive earnings surprises and the thawing of global trade tensions. Off-benchmark positions in digital services and software company TietoEvry and chipmaker ASM International were among the top contributing holdings for the quarter as a result. Positive stock selection within IT also contributed strongly to excess returns. Shares in both Nokia and Wirecard took a big hit in October, rewarding the decision to not hold either in the Fund. Nokia’s stock plunged over 23% in one day after it announced the suspension of its dividend and slashed its profit outlook on the back of increasing costs relating to the roll-out of equipment for 5G mobile networks. Wirecard’s share price tumbled after the Financial Times published a report alleging false accounting practices to inflate sales and profit figures.

Performance

Performance chart

Period

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3M
6M
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Since launch

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Benchmark

Performance indicator Start date End date
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Performance table

End date

Performance table Net performance Performance indicator  Start date End date
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Risk table

End date

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

Start date

End date

Price Date Portfolio AUM
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NAV

First NAV date 31/05/00

Administration

Distribution country

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

Fees

Ongoing Charges 1.49%

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 5,000 Minimum subsequent investment: EUR 2,000

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