AXA IM launches two equity shield funds seeded by large DC scheme
- 26 June 2025
- Two funds available with 25% and 20% downside protection, respectively, over 12 months
AXA Investment Managers (AXA IM) has launched two UK-domiciled funds to support its new Equity Shield strategy, aimed at UK pension schemes. The funds invest primarily in global equities, while seeking to reduce the impact of market downturns and thereby offering a more stable approach to equity investing. The funds have been seeded by a large DC scheme with an initial investment of over £200 million.
The AXA IM Equity Shield funds offer institutional investors (such as pension schemes for their retail members), and other advised retail investors, participation in global equity returns through exposure to the MSCI World Climate Change Index in GBP. The two funds are designed to provide different levels of volatility reduction, allowing scheme members to chose the level that is best suited to them.
The AXA Equity Shield 75 Fund seeks to protect against the risk that the NAV per share falls below 75% of the highest NAV achieved during the previous 12 month period. For the AXA Equity Shield 80 Fund, the corresponding level of protection is 80%.
The strategy is managed by AXA IM’s experienced structured asset management team, consisting of 12 fund managers1 , with roughly £21 billion in assets under management2 . Seven of the team are specialists in the design and management of tailored hedging solutions for institutional clients.
Equity protection strategies are designed to mitigate risks in volatile financial markets. They aim to shield investors against significant market corrections, providing a robust defence mechanism while still providing exposure to equity markets. These strategies involve various combinations of options tailored to suit specific risk management objectives as well as evolving market conditions. Each strategy has its own advantages and risks, contributing to a diverse range of behaviours in different market conditions. The AXA IM Equity Shield strategy has been specifically designed for pension schemes and their members.
Herschel Pant, Head Of Global Consultant Relations & UK Institutional, at AXA IM, said:
“Investors inform us that pension scheme members want to remain invested in equities amid market volatility but without risking their retirement outcomes. Our equity shield strategy addresses this problem by aiming to shield members in all market conditions. We are delighted to launch this product with a strong partnership in design and implementation with a prestigious DC scheme and their advisors, showing investor confidence in AXA IM’s approach to equity downside protection.”
Rene Poisson, Managing Director at Poisson Management Ltd, an independent trustee, said:
“By providing members with some protected equity exposure to and through retirement, I believe the strategy will help members access the growth they need to achieve a better long term outcome in retirement.”
Capital at risk. No assurance or guarantee is given that the investment objectives will be achieved. The value of investments, and any income from them, may fall as well as rise and investors may get back less than they originally invested.
No assurance or guarantee is given that the investment objective will be achieved, and an investor’s capital is at risk.
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Notes to editors
About AXA Investment Managers
AXA Investment Managers (AXA IM) is a leading global asset manager offering a diverse range of global investment opportunities in both alternative and traditional asset classes. Through our products we aim to diversify and grow portfolios, while delivering long-term investment performance and value for clients.
AXA IM manages approximately €879 billion in assets, of which €493 billion are categorised ESG-integrated, sustainable or impact. As an established player in responsible investing, we adopt a pragmatic approach with a view to provide long-term value to our clients, our employees and the broader economy.
Part of the AXA Group, a worldwide leader in insurance and asset management, AXA IM employs over 3,000 employees and operates from 24 offices in 19 countries globally.
All figures, as at end of December 2024.
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This press release should not be regarded as an offer, solicitation, invitation, or recommendation to subscribe for any investment service or product and is provided for information purposes only. No financial decisions should be made on the basis of information provided.
Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.
Before making an investment, investors should read the relevant Prospectus and the Key Investor Information Document / scheme documents, which provide full product details including investment charges and risks. The information contained herein is not a substitute for those documents or for professional external advice.
The products or strategies discussed in this document may not be registered nor available in your jurisdiction. Please check the countries of registration with the asset manager, or on the web site https://www.axa-im.com/en/registration-map, where a fund registration map is available. In particular units of the funds may not be offered, sold or delivered to U.S. Persons within the meaning of Regulation S of the U.S. Securities Act of 1933. The tax treatment relating to the holding, acquisition or disposal of shares or units in the fund depends on each investor’s tax status or treatment and may be subject to change. Any potential investor is strongly encouraged to seek advice from its own tax advisors.
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In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.
Risk Warning
The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested.