Experience the new Fund Centre

AXA Rosenberg Global Small Cap Alpha Fund

ISIN IE0004324657

Last NAV 35.9700 USD as of 25/02/20

Overview

Investment objectives

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

Risk

Synthetic Risk & Reward Information scale

1 2 3 4 SRRI Value 5 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 are subject to some levels of variation, which may result in gains or losses.

Additional risks

Liquidity Risk: some investments may trade infrequently and in small volumes. As a result the fund manager may not be able to sell at a preferred time or volume or at a price close to the last quoted valuation. The fund manager may be forced to sell a number of such investments as a result of a large redemption of units in the Sub-Fund. Depending on market conditions, this could lead to a significant drop in the Sub-Fund's value and in extreme circumstances lead the Sub-Fund to be unable to meet its redemptions. 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

Global small cap equities rose sharply in the final quarter of 2019, with the benchmark MSCI World Small Cap Index rising by 9.5% in US dollar terms to cap an almost 27% annual return. The index’s climb was helped by the announcement of a ‘Phase One’ trade deal between the US and China and a reduction in uncertainty surrounding Brexit after the UK government and European Union agreed a new draft deal and the incumbent Conservative party won a comfortable majority in the country’s general election. Investor sentiment was also lifted by strong domestic economic data, encouraging corporate results, and continued accommodative monetary policies in the US. Against this supportive macroeconomic backdrop, all sectors rose, with cyclicals comfortably outperforming traditionally defensive areas of the market. Information technology stocks proved to be particularly strong, adding to the significant gains made earlier in the year, while health care rebounded from the prior quarter’s weakness. The Fund rose in value during the period, but modestly underperformed the sharp rise in the benchmark index. Stock selection benefited returns, but was offset by unrewarded industry exposures and risk factor positioning. Regarding the latter, the significant rotation into value stocks seen in September and October faded as the quarter progressed, weighing on the Fund’s relative returns. As previously noted, we believe that the current high degree of mispricing in small cap markets continues to offer strong long-term support for lowly valued companies, whose underperformance in recent years has reached levels last seen during the bubble in technology stocks in the late nineteen nineties. At an industry level, the Fund’s longstanding underweight exposure to health care was a significant detractor as the sector rallied amid merger and acquisition activity and as regulatory concerns ahead of this year’s US election appeared to fade. While not owning Sage Therapeutics boosted relative returns after its depression treatment failed a clinical trial, holdings in Perrigo and Allscripts Healthcare Solutions hurt after disappointing results. An above-benchmark allocation to information technology stocks, and the choice of stocks within the sector, added value during the quarter. Interface hardware and software firm Synaptics proved particularly beneficial after it announced better-than-expected results and raised guidance. Wearable device manufacturer Fitbit was another bright spot as the shares surged in anticipation of a takeover by Google. Holdings in technology stocks Teradata and Konica Minolta, however, weighed on returns. The US database software provider announced disappointing results and the departure of its CEO, while the Japanese office equipment company cut its outlook, citing ongoing trade tensions and the strong Yen. Sinclair Broadcast Group was another top detractor; shares in the company surged in the first half of the year after its acquisition of regional sports networks from Disney, but investor sentiment on the stock has since soured.

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

Fees

Ongoing Charges 1.63%

Fund facts

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

Portfolio management

Fund Manager Harry PRABANDHAM
Investment team MT Rosenberg Global Equity

Structure

Investment area Global
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: USD 5,000 Minimum subsequent investment: USD 2,000

Literature