Axa Investment Managers has made plans to convert its global equity fund into an income vehicle.
Subject to unit-holder approval, the £60.3m Axa Framlington Global Opportunities fund will become the Axa Framlington Global Equity Income fund on October 4.
The fund will change its investment objective and policy to emphasise income instead of growth. The revamped fund will also have an increased flexibility and be able to invest in other assets.
While the fund will continue to be run by current manager Mark Hargraves it is thought William Howard will take over management of the vehicle if remit changes are approved.
Mr Howard currently runs the offshore Axa WF Framlington Global High Income fund. Mr Hargraves also runs the Axa Framlington European and the Axa Framlington Health fund.
Rob Bailey, head of UK wholesale distribution at Axa IM, said the shift would also increase the flexibility of the fund to invest in other assets. However, he added “worldwide equities will remain the main focus”.
Mr Bailey said: “We regularly review our fund range in light of investor expectations and the changing investment environment, and believe these changes could attract new investors, resulting in economies of scale for the fund.”
The fund has returned 38 per cent over the three years to August 20, according to FE Analytics. This compares to an IA Global sector return of 33.9 per cent and an MSCI World index return of 33.8 per cent.
