Report Publisher
€ 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 Rotork 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, Meggitt and Morrisons 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%.
[Show full text]