AXA IM launches an equity fund dedicated to the plastic and waste transition
- Plastic production is an important contributor to the worlds carbon footprint and the ecological crisis caused by plastic waste is a growing concern amongst sustainable investors.
- The fund supports the aim of UN SDG Goal 12, Responsible consumption & production, by investing in companies that are limiting their plastic use or have efficient waste management practices.
- Stock selection is based on a proprietary quantitative process that incorporates both financial and non-financial data which includes the use of Natural Language Processing (NLP).
- AXA IM expect the plastic and waste transition to drive long term investment opportunities in segments of the market such as ‘sustainable packaging’ and ‘plastic recycling’.
AXA Investment Managers (AXA IM) announces the launch of the AXA WF ACT Plastic & Waste Transition Equity QI fund which supports, on the long-term, the United Nations Sustainable Development Goals (UN SDGs), in particular the SDG 12, Responsible consumption and production, by investing in companies that are limiting or managing in a sustainable way their plastic use or have efficient waste management practices.
Managed by the AXA IM Equity QI team, responsible for AXA IM’s quantitative equity capabilities, the fund invests in companies that are UN SDG 12 aligned, for example through the actions they are taking in their operations, such as production processes, recycling rates and supply chain management, to limit or manage in a sustainable way their plastic and waste footprint or because the company provides products that directly support responsible consumption and production.
The fund invests in large, mid and small cap companies across developed and emerging markets. The selection and weightings of the stocks is based on a proprietary quantitative process that incorporates both financial and non-financial data with the objective of identifying fundamental drivers of risk and return whilst structuring the portfolio in a way that meets the fund’s SDG objectives. As an example, the management team uses Natural Language Processing (NLP) to increase exposure to companies that are actively articulating a plastic or waste approach in their earnings calls.
The fund forms part of AXA IM’s ACT range1 . It harnesses both external and internal data (including AXA IM qualitative SDG insights) to measure positive contributions of the companies to the UN SDG 12.
Commenting on the launch of the fund, Jonathan White, Head of Investment Strategy & Sustainability in AXA IM Equity QI team, said: “Companies that are reducing waste and supporting a more sustainable approach to their use of plastic play a key role in the effort to mitigate climate change and stem biodiversity loss.
We expect the next few years to be pivotal in plastics pollution mitigation driven by both government regulation and changing end-consumer preference. These structural trends are likely to drive significant growth in segments of the markets such as sustainable packaging and plastic recycling.
As such its our view that companies that are facilitators or leaders in waste management and plastic-use are not only sustainable investments but could also be an attractive long term investment opportunity.”
The fund is or will be registered and available to professional and retail investors in Austria, Belgium, Denmark, France, Germany, Italy (institutional only), the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
Risk linked to Method and Model: attention is drawn to the fact that the Fund's strategy is based on the utilisation of a proprietary share selection model. The effectiveness of the model is not guaranteed, and the utilisation of the model may not result in the investment objective being met.
Counterparty Risk: Risk of bankruptcy, insolvency, or payment or delivery failure of any of the Sub-Fund's counterparties, leading to a payment or delivery default.