AXA WF Framlington UK – a great way to access the UK market?
Dominic Rowles | Thu 06 June 2019
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- Chris St John looks for economic themes and invests in companies that could benefit
- His fund beat the broader UK stock market over the past year
- We think it's a great way to invest in one of the world's most unloved stock markets
Our view
The UK's home to one of the world's most unloved stock markets. Brexit and other political uncertainty has put many people off investing here. But Chris St John thinks they could be missing a trick. He thinks high quality companies with strong long-term growth prospects are being overlooked and their share prices are now at attractive levels.
We trust Chris St John to make the most of the opportunities on offer. He's proven, well incentivised, and has the support of a well-resourced team. He also has the flexibility to invest wherever he finds the best opportunities – from the giants of the FTSE 100 down to smaller companies with excellent growth potential, but more risk.
The fund remains fairly small in size. This means it's nimble enough to take advantage of almost any opportunity. We think it's a great way to access the UK stock market's potential and expect it to do well over the long run. That's why it’s on the Wealth 50 list of our favourite funds in the major sectors.
How's the fund performed?
Chris St John's managed UK funds for more than a decade. Our analysis of his long-term track record shows he's delivered strong returns by investing in companies with outstanding prospects. We expect his stock picking skills to drive future returns, although there are no guarantees.
The fund did well over the past year too. One of the fund's best performers was media business Future. Its shares rose 90.1%, boosted by a 50% rise in annual revenue after it increased its presence in the US market.
Performance was also boosted by payment processing company Worldpay which was taken over by US financial services company Fidelity Information Services (FIS). Past performance isn’t a guide to the future though. Investments can fall as well as rise in value and you may not get back what you invest.
| Annual percentage growth | |||||
|---|---|---|---|---|---|
| Apr 14 -
Apr 15 |
Apr 15 -
Apr 16 |
Apr 16 -
Apr 17 |
Apr 17 -
Apr 18 |
Apr 18 -
Apr 19 |
|
| AXA WF Framlington UK | *N/A | *N/A | 20.5% | 8.2% | 5.5% |
| FTSE All-Share | 7.5% | -5.7% | 20.1% | 8.2% | 2.6% |
Past performance is not a guide to the future. Source: Lipper IM to 30/04/2019. *full year performance data not available
How's the fund invested?
Chris St John looks for economic themes and invests in companies he thinks will benefit as the theme develops over time.
Current themes include companies set to benefit from a rise in e-commerce. GB Group, for instance, helps other companies verify their customer's identities before they purchase online products. Demand for their service is expected to increase as e-commerce becomes evermore popular.
Recent investments include wealth management platform AJ Bell, which the manager bought when the company first listed its shares on the stock market. He thinks it could benefit from the government drive to get people to take more responsibility for their own finances. The company's shares have risen strongly since the fund's initial purchase.
In contrast, an investment in flight support company BBA Aviation was sold. Chris St John lost faith in its management team when they increased spending on a section of the business expected to deliver a lower return.
Please note the AXA WF Framlington UK Fund is an offshore fund so investors will not be protected by the Financial Services Compensation Scheme.
Find out more about the fund, including charges and how to invest