What does it mean to invest in social progress?
Social awareness is a growing topic that can lead to significant structural changes in society. Acting for social progress means investing in companies that offer products and services that aim to reduce the social cost of some the challenges the world is facing such as demographic shifts and climate change, both in developed and emerging countries. Indeed, we are not all equal in the face of the most basic needs such as access to housing, health care or education.
Fund Manager Anne Tolmunen‘s story
Why invest?
It is possible to act by investing in companies capable of offering solutions to social challenges. Growing collective awareness can create potential investment opportunities. At AXA IM, our approach is focused on the search for long-term value, both financial and extra-financial, with the objective of producing a positive and measurable impact on society.
Investment themes
Access to low-cost housing, infrastructure, financial and digital inclusion.
For example, what is lacking in emerging countries is not business creation initiatives but rather sources of financing. More and more players are developing micro-credit. Similarly, the World Bank has estimated that by 2022, one billion people are expected to remain unbanked. Addressing the needs of this still underserved population would involve improving access to financial services, which represents a potential opportunity.
Protection includes health care, well-being and safety.
As the saying goes, prevention is better than cure. The COVID-19 pandemic has fundamentally accelerated demand for robust preventive measures - as well as highlighting the importance of public support for scientific research. This topic has become a major concern for individuals and a priority of governments.
Social elevation encompasses human capital management, training and entrepreneurship.
In our opinion, companies need diversity across gender, backgrounds and experience to remain innovative and successful. In this area, we see a multitude of investment opportunities in companies that have made a difference to establish themselves as a leader in their market, or companies that offer ‘all-in-one’ digital payment solutions, online learning, childcare or educational consulting.
We are convinced that social impact investing is an investment opportunity for sustainable and profitable growth.
How do you measure the impact of your investment?
To measure the social contribution of an investment strategy, we rely on the reading grid proposed by the United Nations. The impact report of our social progress strategy shows the extent to which the companies in which we invest contribute to the Sustainable Development Goals (SDGs) specifically associated with social challenges. Within our strategy, the direction of our investment decisions is aligned with the SDGs in their social dimension.
Impact Report 2022
In this inaugural annual impact report for AXA WF ACT Social Progress, we aim to illustrate the positive contribution of the companies we invested in across our four social impact themes; Social Inclusion, Healthcare Solutions, Safety & Security and Empowerment.
Read the reportOur ACT range is designed to enable our clients to invest in the companies and projects leading the transition to a more sustainable world. These strategies go beyond ESG integration, either following a process in which investment decisions are driven by ESG themes or seeking out intentional, positive, measurable and sustainable impact.
Biodiversity
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.
Clean Economy
Innovative companies are creating solutions to address pressures on scarce natural resources and the need for greenhouse gas emission reduction.
Green bonds
Green bonds are among the most interesting innovations of the last decade in the field of socially responsible investment products.
US high yield low carbon
We believe the global economy has entered a ‘decade of transition’ towards a more sustainable, de-carbonised model.
Buy and maintain
Our goal is to give clients the ability to AIM for net zero and align with the Paris Agreement decarbonisation pathway.
Social bonds
Rapid growth in the social bonds market offers a compelling opportunity to invest in the social dimension of the transition to a low carbon economy.
Risks
No assurance can be given that our equity strategies will be successful. Investors can lose some or all of their capital invested. Our strategies are subject to risks including, but not limited to: equity; emerging markets; global investments; investments in small and micro capitalisation universe; investments in specific sectors or asset classes specific risks, liquidity risk, credit risk, counterparty risk, legal risk, valuation risk, operational risk and risks related to the underlying assets.
Disclaimer
This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.
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.
All investment involves risk, including the loss of capital. The value of investments and the income from them can fluctuate and investors may not get back the amount originally invested.
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.