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FUND MANAGER'S COMMENT 31/08/2021 FRAMLINGTONGBP EQUITIES AXA Framlington UK Growth Fund R 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* 24.23% 8.75% 7.91% 7.35% 7.76% Benchmark** 26.70% 3.65% 5.91% 6.08% 7.57%

* 1st NAV date: 31/12/1992 ** 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

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

Cumulative performance 1 M. 3 M. YTD 1 Y. 3 Y. 5 Y. 8 Y. Launch Portfolio* 4.73% 6.99% 14.80% 24.45% 28.66% 46.37% 76.53% 753.73% Benchmark** 2.67% 3.38% 14.66% 26.95% 11.37% 33.29% 60.48% 710.68% The figures provided relate to previous months or years and past performance is not a reliable indicator as to future performance.

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FUND MANAGER'S COMMENT 31/08/2021 FRAMLINGTONGBP EQUITIES AXA Framlington UK Growth Fund R 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 31/12/92 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: £1,000 Recommended Investment Time Horizon : This Fund may not be suitable Minimum subsequent investment: £100 for investors who plan to withdraw their contribution within five years. Disclaimers

Lower risk Higher risk Performance calculations are net of management or distribution fees. ◄ ► Performance are shown as annual performance (365 days). Performance Potentially lower reward Potentially higher reward calculations are based on the reinvestment dividend. Past performance is not a guide to future returns. Figures are on a bid to 1 2 3 4 5 6 7 bid basis, net of fees and expenses, and assume net income is re-invested in sterling terms. Discrete and cumulative performance returns are based on published dealing prices. Breakdowns may not sum to 100% The risk category is calculated using historical performance data due to roundings. and may not be a reliable indicator of the Fund's future risk profile. Risk Ratios are calculated from gross performances. The risk category shown is not guaranteed and may shift over time The lowest category does not mean risk free. In the case where the currency of investment is different from the Fund’s reference currency the gains are capable of varying considerably due to Why is this Sub-Fund in this category? the fluctuations of the exchange rate. The capital of the Fund is not guaranteed. The Fund is invested in The value of investments and the income from them can go down as well financial markets and uses techniques and instruments which may as up and is not guaranteed. This may be due to market fluctuations or be subject to sudden and significant variation, which may result in changes in exchange rates, or both. The amount returned may not be as substantial gains or losses. great as the amount invested. Past performance is not a guide to future returns. Investments in smaller companies offer the possibility of higher Significant risks not taken account by the risk indicator returns but may also involve a higher degree of risk. Further explanation of the risks associated with an investment in this Fund can be found in the prospectus. Investors in Switzerland should note that the current Prospectus, Simplified Prospectus and annual and semi-annual reports can be General characteristics obtained free of charge from our Swiss Representative and Paying Agent: Banque Genevoise de Gestion (BGG) at 15 rue Toeppfer, CH-1206 Geneva, Switzerland. Legal form Unit Trust Legal country The fund is registered for public distribution in UK. Please check the Launch date 21/12/92 countries of registration with the asset manager, or on the web site Fund currency GBP www.axa-im-international.com, where a fund registration map is available. Shareclass currency GBP The tax treatment relating to the holding, acquisition or disposal of shares Valuation Daily or units in the fund depend on each investor’s tax status or treatment Share type Accumulation / Income and may be subject to change. Any potential investor is strongly ISIN code C / D GB0003509873 / GB0003509766 encouraged to seek advice from its own tax advisors. SEDOL Code C / D 0350987 / 0350976 Depending on the investment strategy used the information contained Bloomberg Code C / D FRAUKGA LN / FRAUKGI LN herein may be more detailed than the information disclosed in the MEX Code C / D FRUKGA / FRUKG prospectus. Any such information (i) does not constitute a representation or undertaking on the part of the investment manager; (ii) is subjective Ongoing charges 1.59% and (iii) may be modified at any time within the limits provided in the fund Financial management fee* 1.5% prospectus. Initial min. subscrib. 1 000 GBP This document is for informational purposes only and does not constitute, Following min. subscrib. 100 GBP on AXA Investment Managers Paris part, an offer to buy or sell or a Management company AXA Investment Managers UK Limited solicitation or investment advice. Due to its simplification, this document Delegation of account STATE STREET BANK AND TRUST is partial and the information can be subjective. AXA Investment Managers administration COMPANY Paris may but shall not be obligated to update or otherwise revise this Custodian HSBC BANK PLC document without any prior notice. All information in this document is established on the accounting information or on market data basis. All *As disclosed in the most recent Annual Report, the ongoing charges accounting information is un-audited. AXA IM and/or its affiliates may calculation excludes performance fees, but includes management and receive or pay fees or rebates in relation to the Mutual Fund or investment applied services fees. The effective Applied Service Fee is accrued at vehicle. AXA Investment Managers Paris disclaims any and all liability each calculation of the Net Asset Value and included in the ongoing relating to a decision based on or for reliance on this document. The most charges of each Share Class. recent prospectus is available to all investors and must be read prior subscription and the decision whether to invest or not must be based on the information contained in the prospectus. www.axa-im.com €

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

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