AXA IM launches its first Multi-Asset impact fund
AXA Investment Managers (AXA IM) announces the launch of the AXA WF Multi Asset Optimal Impact fund as it further reinforces its Responsible Investment offering with the fund joining its impact investing range. The fund invests in securities demonstrating a positive social and environmental impact while aiming to generate financial performance based on strong convictions and a flexible approach to better navigate the changing macroeconomic environment. This fund has been awarded the French SRI (Socially Responsible Investment) label1 .
AXA IM’s comprehensive approach to investing for impact aims to positively contribute to a large spectrum of the UN Sustainable Development Goals (SDGs2 ) to build a more sustainable future.
The fund has a particular focus on the environment – especially climate change – as well as social themes including health and human capital. It aims at contributing to the following UN SDGs:
Environment: energy transition – smart energy (SDG 7), sustainable transport, sustainable industry (SDG 12) and resource scarcity i.e. recycling and preservation;
- Health & well-being: personal security and healthcare (SDG 3) solutions;
- Inclusion: financial inclusion, housing and basic infrastructure (SDG 11);
- Empowerment: women (SDG 5), human capital and livelihoods (SDG 8).
The fund can invest from 0% to 100% in debt securities,including inflation-linked,green, social and sustainable bonds, and from 0% to 75% in equities. This leeway could help to capture growth upside when markets are improving, and may limit downside risks when markets are in decline.
To build the investment universe, a combination of quantitative and qualitative filters is applied, alongside a combination of top-down Environmental, Social and Governance (ESG) research and bottom-up analysis, to select the most relevant companies. The portfolio’s contribution to these SDGs is measured, such as through the reduction of carbon emission or water intensity for instance.
Managed by Serge Pizem, Head of Multi-Asset at AXA IM, and his team, the fund is part of the Optimal Income range and 5% of its management fees will be donated to charities, as announced by AXA IM for its impact fund range in May.
Commenting on the launch, Serge Pizem said: “From both investors and companies, there is an undoubtable rising of awareness of the challenges facing society today from all areas of the ESG spectrum. The Multi Asset Optimal Impact fund focuses on finding businesses that are committed to create positive and measurable impacts on our society, in line with our impact investing approach. By integrating positive ESG criteria, and excluding certain assets, the impact investing element of the fund covers a broad range of complex social and environmental objectives that aim to build a better future, while our Multi-Asset approach gives us the ability to adapt allocation to the evolution of financial markets. In a nutshell, the objective of the fund is to be good for the people and good for the planet.”
The fund is registered and available to professional and retail investors in Austria, Belgium, Switzerland, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden and United Kingdom.
The value of investments may fall as well as rise and you may not get back the full amount invested.
The capital of the Sub-Fund is not guaranteed. The Sub-Fund is invested in financial markets and uses techniques and instruments which are subject to some levels of variation, which may result in gains or losses.
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.
Liquidity Risk: risk of low liquidity level in certain market conditions that might lead the Sub-Fund to face difficulties valuing, purchasing or selling all/part of its assets and resulting in potential impact on its net asset value.
Credit Risk: Risk that issuers of debt securities held in the Sub-Fund may default on their obligations or have their credit rating downgraded, resulting in a decrease in the Net Asset Value.