The Axa World Funds Framlington Digital Economy fund has been designed to invest in firms that benefit from the growth of internet shopping, driven by a millennial generation that has grown up using the world wide web.
The Luxembourg-domiciled Sicav will target a portfolio of 40-60 stocks of companies involved in the discovery, decision-making, delivery and execution of e-commerce, as well as firms that enable traditional businesses to convert to digital processes.
Stocks in the portfolio will be globally listed in both developing and emerging markets and across the market cap spectrum.
Jeremy Gleeson, manager of the Axa Framlington Global Technology fund since June 2007, will manage the fund, assisted by the Axa IM Framlington equities’ thematic team.
Gleeson said there are two drivers at play: the ability to access products and services via connected devices, and demographics.
“The smartphone that many of us carry around with us all the time is providing a gateway to how we as consumers get information, and make purchase decisions,” he said.
“The other driver is more subtle – demographics. Millennials, defined as those under the age of 35, have grown up with the internet always being there and with the option to shop online. They are also just entering their peak spending years.
“Businesses need to prepare themselves to cater for this digitally-savvy segment of the population.”
