Investing in change for the better
Addressing climate change requires finding ways to reduce the impact of human activity on nature and biodiversity loss. And we can’t address these issues without simultaneously addressing some of the big social issues – such as food and energy security, access to shelter, and overall health and wellbeing – that drive human behaviour and prosperity.
This strategy acknowledges that these goals are intertwined by investing in companies addressing both environmental and social challenges.
The drive to counteract climate change, biodiversity loss, and social inequality comes directly from governments, corporates, and consumers. We believe that the United Nations Sustainable Development Goals (UN SDGs) offer an excellent framework for companies to create long-term value for society as well as sustainable financial returns for investors.
Balancing what's good for the world with what's good for investors
This active, unconstrained portfolio has the dual objective to generate financial returns while investing in companies making measurable, positive contributions to achieving environmental and social United Nations Sustainable Development Goals.
We believe that companies that make positive contributions to improving the natural environment and reducing inequality could achieve strong earnings growth and shareholder returns over the long term. It is a truly global portfolio; investing across the full market capitalisation spectrum, it provides exposure to the rich sources of added value in emerging markets and smaller companies. This helps maximise growth, within a solid risk-monitoring framework.
Stock selection is bottom-up, with the final decision to invest being made by the portfolio managers. The fund is actively managed in reference to the MSCI All Country World Total Return Index, which may be used by investors to compare the fund's financial performance.
Making the most of our resources and reach
Our established proprietary research framework, dedicated team of impact analysts and third-party SDG quantitative filters provide a credible investment universe of companies providing products and services that contribute to our three main investment themes.
Our active, long-term approach and concentrated portfolio lend themselves to company engagement, helping us to influence the companies we hold on their contribution to the world’s most pressing social and environmental issues and improving their reporting standards.
Combining investment expertise with leading impact analysis
AXA ACT People & Planet Equity draws on AXA IM’s extensive experience and expertise in thematic investing, environmental, social and governance (ESG) monitoring and company analysis, as well as our own proprietary impact analysis framework.
Our People and Planet Equity Strategy
Our strategy aims to generate financial returns by investing in companies making measurable, positive contributions to some of the most urgent social and environmental problems the world is facing.View funds
We have identified three themes that we believe to be both investible and aligned with the UN SDGs
- Social Inclusion
- Healthcare Solutions
- Safety & Security
- Low Carbon Transport
- Sustainable Industry
- Renewable Developers & Grid
- Clean Energy Equipment
- Land and Animal Preservation
- Water Ecosystem
- Sustainable Materials
- Recycling & Recirculation
Investments should be made with an upfront objective of positive social or environmental outcomes. Our research seeks to identify companies that demonstrate an intentional, strategic commitment to positive impact.
Invest in companies where the positive outcomes are of material significance to the beneficiaries, the company, or to both.
The extent to which a company is making its 'needed' products and services more accessible or commercially viable, for example through innovation and new technologies, lower prices or better distribution.
A company's corporate practices, or products and services, may significantly undermine the positive impact it is generating elsewhere.
There needs to be a clear methodology and commitment to measuring and reporting the social and environmental performance of investments.
Encouraging companies to do more and better
Our long-term, concentrated approach provides an excellent basis for our engagement efforts.
We emphasise direct dialogue with companies on sustainability and governance issues that have a material impact on long-term financial performance. We also engage around SDGs and aim to motivate companies to improve their impact reporting standards.
Our engagement priorities are based on our observation of global market developments and emerging ESG practices. Engagement is focused on our key themes, and we engage proactively on the issues that are central to the portfolio.
There is an economic and human cost to biodiversity loss which is being addressed through products and services contributing to ecosystem preservation and biodiversity mitigation.
Climate-aware Buy and Maintain
Our climate-aware buy and maintain credit strategy is designed to benefit from the climate transition by understanding how the physical risks of climate change and the political and regulatory momentum around the issue will impact the value of credit investments over time.
Capital at risk. The value of investments and the income from them can go down as well as up and you may get back less than you originally invested.
Counterparty Risk: failure by any counterparty to a transaction (e.g. derivatives and securities lending) with the Fund to meet its obligations may adversely affect the value of the Fund. The Fund may receive assets from the counterparty to protect against any such adverse effect but there is a risk that the value of such assets at the time of the failure would be insufficient to cover the loss to the Fund.
Emerging Market Risks: emerging markets or less developed countries may face more political, economic or structural challenges than developed countries. As a result, investments in such countries may cause greater fluctuations in the Fund's value than investments in more developed countries. In addition, the reliability of trading, settlement and custody systems in some emerging market countries may not be equal to more developed countries and result in greater operational and liquidity risk.
Currency Risk: the Fund holds investments denominated in currencies other than the base currency of the Fund. As a result, exchange rate movements may cause the value of investments (and any income received from them) to fall or rise affecting the Fund's value.
Further explanation of the risks associated with an investment in this Fund can be found in the prospectus.