Platform Availability
APEX NZ, BT Asgard, BT Panorama, CFS Edge, Centric, HUB24, IOOF, Macquarie Wrap, Mason Stevens, Netwealth, Praemium
STATISTICAL
DATA2
PORTFOLIO SUMMARY
FEATURES
- APIR CODE HOW0002AU
- REDEMPTION
PRICEA$ 3.6156
-
FEES *
Management Fee: 1.35% p.a
- Minimum initial investment
$10,000
- FUM AT MONTH END
A$ 367.83m
- STRATEGY INCEPTION DATE
1 July 2004
- BenchmarkMSCI All Country World Total Return Index (net, AUD)
Fund Managers
Bradley Amoils
Managing Director/Portfolio Manager
Andrew Jacobson
CEO/Chief Investment Officer
Description
The Pengana Axiom International Fund invests in companies that are dynamically growing and changing for the better, more rapidly than generally expected and where the positive changes are not yet reflected in expectations or valuation.
The Global Equity Strategy seeks dynamic growth by concentrating its investments in global developed markets, and may also invest in companies located in emerging markets.
The investment manager is Axiom Investors, a Connecticut-based global equity fund manager formed in 1998 with over US$19billion in assets under Management.
COMMENTARY
Market Review
Global equities advanced in September, with growth stocks outperforming value as investors refocused on company fundamentals and earnings momentum. The Fund’s forward 12-month earnings revisions remained well ahead of the benchmark, with nearly 70% of holdings upgraded during the month. Aggregate earnings growth across the portfolio continues to exceed the market. The Fund’s price-to-earnings-to-growth (PEG) ratio, which compares valuation to expected earnings growth, fell to 1.2 times from 1.3 times in August, showing that stronger fundamentals more than offset modestly higher valuations. A weaker US dollar detracted from performance in Australian dollar terms.
Inflation continued to moderate across major economies, with the US Core PCE Index steady at 2.9% year-on-year. The Federal Reserve cut rates by 25 basis points in line with expectations and signalled a more accommodative stance amid softer employment data. Global monetary policy remained supportive of equity markets.
Economic conditions were steady but uneven across regions. In the US, consumer demand stayed firm, with retail sales growth accelerating in real terms. Europe was stable, with PMIs in expansionary territory, though retail spending softened slightly. In China, early signs of improvement appeared as manufacturing and services activity strengthened, supported by modest policy measures. Commodity prices were broadly unchanged, with lower oil offset by firmer precious metals.
With inflation near central bank targets and growth fundamentals outpacing the benchmark, Axiom remains focused on dynamic companies with strong earnings visibility and positive revision trends.
Portfolio Commentary
The Fund outperformed the benchmark in September. Information technology and consumer staples contributed positively at the sector level, while communication services and consumer discretionary detracted.
AppLovin, a US-based digital advertising company, was a leading contributor after positive industry feedback on advertiser demand for its new e-commerce platform. This supported upward revisions to revenue and profit forecasts. TSMC, the Taiwan-based semiconductor manufacturer, also performed strongly after reporting higher monthly revenues and improved utilisation. Demand for advanced chips used in AI infrastructure continues to accelerate, supporting growth expectations well above consensus. Oracle advanced after reporting strong quarterly results and issuing guidance that exceeded market forecasts. The company announced a large increase in contract value, highlighting continued expansion in its cloud infrastructure business.
The underweight position in Tesla detracted as sentiment improved on stronger vehicle sales and speculation around new product launches. Axiom remains cautious on Tesla, viewing its longer-term opportunities in autonomous driving and robotics as too uncertain to model with confidence. Boston Scientific declined after recent strength as healthcare investor focus rotated from medical devices towards pharmaceuticals. Amazon also lagged despite improving fundamentals in both its retail and cloud businesses. The Fund added to Amazon on the view that earnings are positioned to exceed expectations into 2026.
Portfolio activity balanced new investments with selective profit-taking. The Fund increased positions in Morgan Stanley, Alphabet and Spotify. Morgan Stanley remains well placed to benefit from higher capital markets activity, while Alphabet increased following improving advertising trends and stronger demand for cloud services. Spotify was also added to after price increases across key regions improved profit visibility. Reductions were made to Visa, SAP and Hitachi. Visa’s valuation moved towards the top of its historical range, while SAP and Hitachi were trimmed following softer enterprise spending and digital-services demand.
A new position was established in Amphenol, a US-based manufacturer of communications connectors and cabling used in data transmission. The company is a key supplier to Nvidia’s rack-scale server systems and is expected to benefit from rising data-centre investment and next-generation product cycles. The Fund exited its position in Tradeweb as trading volumes began to soften.
During the month, two holdings, TSMC and Intuitive Surgical, were downgraded by MSCI on governance and product-quality concerns, respectively. Engagement with both companies is planned as Axiom continues to advocate for stronger disclosure and risk-management practices.