Morningstar moves AXA fund to neutral


Morningstar has moved the AXA Framlington Managed Balanced fund to Neutral, following a recent reshuffle of the fund’s UK equity and fixed income positions.

The AXA Framlington Managed Balanced fund is a Ucits compliant multi-asset vehicle, which was previously rated as Silver. The year to date, the £953.44m fund has had a performance of 0.93%, compared to 8.26% annualised return over the past three years.

Fund manger Richard Peirson has recently handed over the management of UK equities and fixed income, with Nick Hayes taking over UK fixed income, which he will manage in a similar fashion to the existing AXA Sterling Bond Fund.

As of November 2015, Jamie Hooper is responsible for the UK equity side of the fund, he is also in charge of the AXA Framlington UK Growth fund. While his strategy is similar to that of Peirson, Randal Goldsmith, senior manager research analyst at Morningstar expects the portfolio to become slightly more concentrated.

“Following a recent Morningstar Analyst Ratings Meeting, Morningstar has moved the AXA Framlington Managed Balanced fund to a Neutral Rating. The fund was previously rated Silver, but longstanding manager Richard Peirson is handing over management of both the UK equities and fixed income portions of the portfolio to other team members, retaining only responsibility for asset allocation positioning. The latter has been inactive relative to security selection; and the new managers, who have responsibility for over 50% of the portfolio, have mixed records. Our conviction on the fund has therefore reduced” Goldsmith comments.