AXA IM Framlington Equities has adapted its internal research capabilities to respond to evolving world of equities and introduce a much keener focus on thematics.
The asset manager is set to adopt five core thematics in its equity research, all of which are related to the ‘evolving economy’.
These are: ageing and lifestyle, which focuses on extended life expectancy; connected consumer, which looks at the e-commerce value chain; automation, aimed at robotics and automation; clean technology, which covers low-carbon and sustainability; and transitioning societies, which is about changing consumption patterns.
AXA IM Framlington already invests in these areas through listed equities but has singled them out due to the multi-decade growth potential. The company said it anticipates 10% year-on-year growth in these areas, alongside large-scale diversification benefits.
The company said active, bottom-up stock selection remains a main driver of portfolios, but added that the ‘evolving economy’ idea will complement existing fundamental research.
Framlington Equities has begun to look at its fund range in light of this long term conviction. The Robotech strategy was launched in 2015 under Jeremy Gleeson and Tom Riley and has now reached around €4 billion in assets.
Meanwhile, the group also launched a Digital Economy strategy late last year. This fund, which is overseen by Gleeson, focuses on companies involved in the discovery, decision making, delivery and execution of ecommerce.
Commenting on the new model, Mark Beveridge, global head of Framlington Equities at AXA IM, said: ‘We are convinced that the themes we have identified will accelerate over the next decade and believe investors have to adapt. In recognition, we have adapted our internal research capabilities by identifying five main long-term growth thematics within the ‘evolving economy’.’