Fund in Focus - Axa Framlington Fintech
An interview with: Vincent Vinatier, Fund Manager
Who is the fund manager and what is your role?
Hello, my name is Vincent Vinatier and I have been working as an analyst or fund manager for over 20 years, a large part of that in London working for companies like Schroders or Cazenove. I have been at Framlington covering and investing financials for the last 6 years and I am currently running the Fintech strategy.
Why should investors consider FinTech in their portfolio?
We believe that there are great investment opportunities to be found in the fintech area.
Fin tech is aggressively disrupting the financial industry leading to an accelerating divulgence between winners and losers. And it is this redistribution of the profit pool that is creating the opportunity.
Neo banks and digital players can offer significantly better customer service levels, gain market share in the process while not being encumbered by legacy infrastructure.
What is your Outlook for the FinTech Sector?
Financials are a very macro driven sector which is also impacted by heavy regulation and aggressive new entrants and players; with new business models really disrupting the outlook for some of these companies. So, I would say that overall the outlook for the financial industry could be considered as mixed. However, as already mentioned we expect the rise of fintech to lead to significant redistribution of the profit pool with big winners emerging.
What makes the Axa Framlington FinTech fund different?
Well, there are a few very strong points of differentiation. Firstly, this is all about stock picking and understanding business models - this is something that cannot be replicated by passive funds for example.
Then secondly the fund is truly global I mean some of the best opportunities in fintech come from the US and Europe, that’s for sure, and we have exposure to this. But also some of the best opportunities are in emerging marketing to which the fund is highly exposed.
And third, as mentioned the fund is highly concentrated with conviction portfolio with a very long term investment horizon and this is quite important in terms of comparing ourselves to the competition.
It is important that no actions should be taken without first taking advice. Personal circumstances and an individual’s appetite for risk means that the advice for one person may not be the same for everyone. Please remember that the value of your investment can go down as well as up, and may be worth less than you paid in. Information is based on our understanding at 04.06.19