March 2025

• The Fund returned -8.3%, while the benchmark delivered -4.2% in March, as equity markets declined sharply amid investor uncertainty around US policy, alongside one of the most significant rotations out of growth in recent history.
• The Fund’s underperformance was driven by weakness in communication services, consumer discretionary, and information technology.
• During the month, the Fund initiated six new positions: Alibaba, Tokio Marine, Unilever, Primo Brands, JP Morgan, and Deutsche Boerse.

Top Holdings (alphabetically)

Amazon.com, Inc.

United States

Consumer Discretionary

Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company products include books, music, computers, electronics and numerous other products. Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers. Amazon also operates a cloud platform offering services globally.

Apple Inc.

United States

Information Technology

Apple Inc. designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. Apple sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers.

Boston Scientific Corporation

United States

Health Care

Boston Scientific Corp. engages in the development, manufacture, and marketing of medical devices that are used in interventional medical procedures. It operates through the MedSurg and Cardiovascular segments. The MedSurg segment includes Endoscopy, Urology, and Neuromodulation. The Cardiovascular segment consists of Cardiology and Peripheral Interventions. The company was founded by John E. Abele and Pete Michael Nicholas on June 29, 1979 and is headquartered in Marlborough, MA.

Cintas Corporation

United States

Industrials

Cintas Corp. engages in the provision of corporate identity uniforms through rental and sales programs. It operates through the following segments: Uniform Rental and Facility Services, First Aid and Safety Services, and All Other. The Uniform Rental and Facility Services segment consists of the rental and servicing of uniforms and other garments including flame resistant clothing, mats, mops and shop towels, and other ancillary items. The First Aid and Safety Services segment includes first aid and safety products and services. The All Other segment contains fire protection services and its direct sale business. The company was founded by Richard T. Farmer in 1968 and is headquartered in Cincinnati, OH.

Meta Platforms Inc Class A

United States

Communication Services

Meta Platforms, Inc. operates as a social technology company. The Company builds applications and technologies that help people connect, find communities, and grow businesses. Meta Platform is also involved in advertisements, augmented, and virtual reality.

Microsoft Corporation

United States

Information Technology

Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices.

Netflix, Inc.

United States

Communication Services

Netflix, Inc. engages in providing entertainment services. It also offers activities for leisure time, entertainment video, video gaming, and other sources of entertainment. It operates through the United States and International geographic segments. The company was founded by Marc Randolph and Wilmot Reed Hastings on August 29, 1997 and is headquartered in Los Gatos, CA.

SAP SE

Germany

Information Technology

SAP SE engages in the provision of enterprise application software and software-related services. It operates through the following segments: Applications, Technology, and Support; Qualtrics; and Services. The Applications, Technology, and Services segment includes sale of software licenses, support offerings, and cloud subscriptions. The Qualtrics segment sells experience management cloud solutions. The Services segment offers professional services, premium support services, implementation services for software products, and education services on the use of products. The company was founded by Hasso Plattner, Klaus Tschira, Claus Wellenreuther, Dietmar Hopp, and Hans-Werner Hector on April 1, 1972 and is headquartered in Walldorf, Germany.

Taiwan Semiconductor Manufactu

United States

Information Technology

Taiwan Semiconductor Manufacturing Company, Ltd. manufactures and markets integrated circuits. The Company provides the following services: wafer manufacturing, wafer probing, assembly and testing, mask production, and design services. TSMC's ICs are used in computer, communication, consumer electronics, automotive, and industrial equipment industries.

Visa Inc. Class A

United States

Financials

Visa Inc. operates a retail electronic payments network and manages global financial services. The Company also offers global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities.

Market Review

Equity markets declined broadly in March, with the US leading losses and most other major regions also closing the month lower. Growth stocks significantly underperformed value, creating one of the widest style dispersions in recent years and a particularly challenging backdrop for the Fund’s growth-oriented positioning. A weaker US dollar detracted from performance in Australian dollar terms.

Inflation trends remained broadly stable across major economies. In the US, price pressures showed signs of reacceleration, prompting investor caution around the potential delay in monetary easing. Economic activity improved modestly in parts of Europe and China, while signs of resilience in US consumer spending were tempered by a slower pace of growth.

In this environment, Axiom continues to favour dynamic growth businesses, particularly those with strong fundamentals and upward earnings revisions. As global growth moderates, the team believes market leadership will increasingly be driven by companies delivering consistent profitability and innovation rather than macro-driven cyclicality.

Portfolio Commentary

The Fund underperformed its benchmark in March, with relative weakness concentrated in growth-oriented sectors. Communication services, financials, and consumer discretionary were the largest detractors, and no sectors contributed positively.

Meta Platforms, a US-based digital advertising and social media company, declined on concerns that a softer economic backdrop could weigh on advertising budgets. ServiceNow, a US-based enterprise software provider, underperformed due to its exposure to the US federal government, which accounts for around 8% of revenues, and investor caution around public sector cost-cutting. Amazon detracted as investors reassessed data centre capital expenditure despite resilient consumer data.

Broadcom, a US-based semiconductor and infrastructure technology firm, contributed positively to relative returns due to the Fund’s lack of exposure, as the stock fell on concerns over slowing AI-related spending. Tesla also contributed positively through non-ownership following weaker-than-expected delivery figures. Cintas, a US-based uniforms and industrial services provider, outperformed on strong quarterly earnings and upgraded guidance.

The Fund reduced exposure to information technology and communication services while increasing allocations to financials and consumer staples. Existing positions in Cintas, Visa, and Sony were topped up. Visa was added for its defensive characteristics, while Sony’s weighting was increased following strong gaming results and optimism around the next Grand Theft Auto release. Nvidia, Netflix, and Alphabet were trimmed to lock in gains and manage portfolio risk amid softer consumer indicators.

Six new positions were established in March. Alibaba, a Chinese technology group, is seeing revenue and profit acceleration as its cloud business scales. Tokio Marine, a Japanese insurer, is gaining market share and offers upside in its specialty lines. Unilever, a global consumer goods company, is reshaping its portfolio to improve growth and margins. Primo Brands, a US bottled water business formed through a merger, is benefiting from health trends and cost synergies. JP Morgan is positioned to gain from increased market volatility. Deutsche Boerse, a European market infrastructure provider, is set to benefit from higher capital markets activity supported by fiscal stimulus.

No positions received MSCI ESG upgrades or downgrades during March. However, the team engaged with Boston Scientific’s chief sustainability officer to deepen their understanding of the firm’s ESG practices. ESG metrics now represent 15% of annual employee performance assessments, influencing compensation. The company has made strong progress on Scope 1 and 2 emissions and has committed to SBTi-aligned Scope 3 targets, working closely with its supply chain.