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FUND MANAGER'S COMMENT 31/08/2021 FRAMLINGTONGBP EQUITIES AXA Framlington UK Growth Fund Z GBP

Fund manager's report

Main changes to the portfolio during August We increased our holding in which, despite a robust trading statement, fell sharply on the disappointing news that its well-liked CEO was leaving the business. However, the prospects for the business are still robust and it should do well as carbon-intensive industries increasingly look for efficiency savings, and from the burgeoning hydrogen market. We sold our position in TP ICAP as the growth prospects for the business look underwhelming, and we also took some profits in Sanne and Experian following a strong period of outperformance.

Factors affecting performance during August

August got off to a slow start due to worries that monetary policy would be tightened more quickly than previously anticipated and also as a result of continued pandemic-related concerns. However, it recovered strongly due to a combination of continued strong earnings, takeover activity, and capital inflows as a result of low interest rates and higher than usual savings levels. On the M&A front, an interesting development in August has been companies receiving improved counter offers to their initial bids, with Sanne, and all benefiting from this.

UK GDP rebounded in the second quarter, growing 4.8% from the previous three months, following a 1.6% contraction in the first quarter. The expansion was driven mainly by household consumption and government spending. The second-quarter recovery left GDP 4.4% below pre-pandemic levels. In surprising news, the inflation rate fell to 2.0% year-on-year in July, from June’s recent peak level of 2.5%. Base effects were a key factor as inflation rose materially in July 2020 when the first COVID-19-related lockdown was eased. Meanwhile, the producer price index rose by 4.9% year-on-year in July, a near-10-year high.

The FTSE All-Share Index finished the month up 2.67% and the FTSE 100 Index gained 2.05%. Real strength was again to be found in the FTSE 250 Index, which gained 5.9%, and it was also a good month of returns for the small-cap index, which gained 4.21%. On a year-to-date basis, the FTSE All-Share Index has gained 14.66%. The Fund outperformed the FTSE AllShare Index in August as it benefited from strong monthly performances from Group, Hill & Smith, and Marshalls following positive results announcements, and from SSE and Ceres Power as renewable energy stocks found favour. , RWS Holdings, and Gamma Communications also performed well as the market continued to look for quality growth stocks. The main detractors from performance were Hargreaves Lansdown, as trading activity slowed quicker and costs were higher than forecast. Convatec Group also disappointed the market as costs have not been able to be passed on quickly enough, leading to margins falling back slightly, and the COVID-19 recovery was also slower than expected at Smith & Nephew. Given the strength of returns this month, most sectors contributed positively with the exception of basic resources, which fell back 1.29%. Current market influences and outlook The main driver of equity markets is still the action in the world’s bond markets, as yields have fallen in response to the US Federal Reserve’s tapering talk due to rising inflationary concerns. August was again a volatile month as the market continued to react to every inflation, employment, and GDP print. This is driving the performance of both markets and sectors as investors try and anticipate the next central bank move. Growth stocks, in general, continued their recovery as investors were nervous that central banks would dampen the recovery removing some of the exuberance from cyclical stocks. In addition to this, the rapid spread of the highly transmissible Delta variant of COVID-19 is another cause for concern. However, economic data, while showing signs of cooling, still remains robust and company updates on the whole are still very encouraging. The attractions of the UK as a place to invest are manifesting themselves most visibly through the ongoing flow of M&A activity in the UK-listed space. With so much liquidity still in the system, this is likely to continue to feature over the coming months.

Performance evolution (in GBP) Annualized performance 1 Y. 3 Y. 5 Y. 8 Y. Launch Portfolio* 25.20% 9.58% 8.73% 8.16% 8.71% Benchmark** 26.70% 3.65% 5.91% 6.08% 6.87%

* 1st NAV date: 21/06/2011 ** Benchmark : Please refer to the Benchmark section in the characteristics/disclaimers part of the document. Source(s): AXA Investment Managers - FTSE as at 31/08/2021 Editor: AXA Investment Managers Paris €

FUND MANAGER'S COMMENT 31/08/2021 FRAMLINGTONGBP EQUITIES AXA Framlington UK Growth Fund Z GBP

Cumulative performance 1 M. 3 M. YTD 1 Y. 3 Y. 5 Y. 8 Y. Launch Portfolio* 4.82% 7.21% 15.38% 25.43% 31.61% 51.97% 87.43% 134.47% Benchmark** 2.67% 3.38% 14.66% 26.95% 11.37% 33.29% 60.48% 96.95% The figures provided relate to previous months or years and past performance is not a reliable indicator as to future performance. €

FUND MANAGER'S COMMENT 31/08/2021 FRAMLINGTONGBP EQUITIES AXA Framlington UK Growth Fund Z GBP

Objective and investment strategy Subscription / Redemption

The aim of this Fund is to provide long-term capital growth. Your orders to buy, sell or transfer units in the Fund must be received by Benchmark the Administrator by 12 noon on any working day, to receive that days Fund price. Please note that if your order is placed by an intermediary or 100% FTSE All Share Total Return Gross from 21/06/11 Financial Adviser they may require extra processing time.The Net Asset Value of this Fund is calculated on a daily basis. Risk characteristics Minimum initial investment: £100,000 Recommended Investment Time Horizon : This Fund may not be suitable Minimum subsequent investment: £5,000 for investors who plan to withdraw their contribution within five years. Disclaimers

Lower risk Higher risk Disclaimers from external financial data service ◄ ► Potentially lower reward Potentially higher reward providers

1 2 3 4 5 6 7 FTSE FTSE International Limited («FTSE») © FTSE. [2021] FTSE® is a trade mark of Stock Exchange Plc and The Financial Times Limited and is The risk category is calculated using historical performance data used by FTSE under licence. All rights in the FTSE Indices vest in FTSE and may not be a reliable indicator of the Fund's future risk profile. and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE Indices or underlying data. No further The risk category shown is not guaranteed and may shift over time distribution of FTSE Data is permitted without FTSE’s express written The lowest category does not mean risk free. consent. Why is this Sub-Fund in this category? The capital of the Fund is not guaranteed. The Fund is invested in Regulatory documents are available on demand financial markets and uses techniques and instruments which may be subject to sudden and significant variation, which may result in substantial gains or losses.

Significant risks not taken account by the risk indicator Further explanation of the risks associated with an investment in this Fund can be found in the prospectus.

General characteristics

Legal form Unit Trust Legal country Launch date 21/12/92 Fund currency GBP Shareclass currency GBP Valuation Daily Share type Accumulation / Income ISIN code C / D GB00B51R1233 / GB00B55S4R83 Bloomberg Code C / D FRAUKGA LN / FRAUKGI LN MEX Code C / D FRAABK / FRAABL Ongoing charges 0.84% Financial management fee* 0.75% Initial min. subscrib. 100 000 GBP Following min. subscrib. 5 000 GBP Management company AXA Investment Managers UK Limited Delegation of account STATE STREET BANK AND TRUST administration COMPANY Custodian HSBC BANK PLC *As disclosed in the most recent Annual Report, the ongoing charges calculation excludes performance fees, but includes management and applied services fees. The effective Applied Service Fee is accrued at each calculation of the Net Asset Value and included in the ongoing charges of each Share Class.