AXA IM Sustainable Equity Strategy

Why does sustainable investing matter?

Sustainable investing is a way of making investment decisions which aim to deliver financial returns and a benefit to society at the same time. It directs investment to companies that seek to promote corporate responsibility while seeking to fight against climate change and environmental destruction.

While Environmental, Social and Governance (ESG) investing is not a new concept, it contains economic information, which defines a company’s profile. Having measurable, reportable and trackable results of companies helps asset managers address these global challenges and define appropriate sustainable investing strategies. It offers investors seeking ESG orientation in their portfolios a transparent way to improve risk and return.

Our Sustainable Equity Strategy

The AXA IM Sustainable Equity strategy is an actively managed global equity strategy designed to provide sustainable outcomes for the investors. It does so by systematically adding stocks with superior earning quality and less volatility, while also fully integrating environmental, social and governance (ESG) insights into the selection of investments.

The result is a sustainable portfolio that seeks to capture the long-term growth associated with equities but with less risk and superior ESG credentials relative to the benchmark, MSCI ACWI ex-Australia.

Role in a portfolio

  • Core element of a global equity allocation
  • Specific exposure to quality, low-volatility factors
  • Entry point to diversified ESG exposure
  • Diversifier across geographies and market cap

Strategy highlights

  • Expenses capped at 35bps
  • Focused on companies that deliver sustainable earnings, to create a defensive portfolio
  • ESG Integration to mitigate risks and potentially improve long term returns

Research ratings

Qualitative Ratings

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As at March 2022 As at 24 November 2021

For investors aiming for more sustainable outcomes through ESG integration

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What are the risks associated with this strategy

Company specific risk: There may be instances where a company will fall in price (or rise in price) because of company specific factors (for example, where a company’s major product is subject to a product recall).

Highly volatile markets: The prices of financial instruments in which the strategy may be invested can be highly volatile.

Market risk: Changes in legal and economic policy, political events, technology failure, economic cycles, investor sentiment and social climate can all directly or indirectly create an environment that may influence (negatively or positively) the value of your investment in the strategy. In addition, a downward move in the general level of the financial markets can have a negative influence on the strategy.

Please note all investments carry risks. Including but not limited to systematic investing risk, emerging markets risks, investment selection risk, currency management risk, fund risk, parent company discretion risk, depositary receipts risk, liquidity risk, operations risk, legal risk and borrowing risk. For additional information, please read the product disclosure statement.

The risks and opportunities of ESG investing
Sustainable Investing

We aim to enable our clients to invest in the companies and projects leading the transition to a more sustainable world.

Sustainable Investing

Green bonds

Green bonds are among the most interesting innovations of the last decade in the field of socially responsible investment products.

Sustainable Investing

Clean Economy

Innovative companies are creating solutions to address pressures on scarce natural resources and the need for greenhouse gas emission reduction.

Sustainable Investing

Sustainable Equity

Systematically identifies stocks with superior earnings quality and less volatility while also fully integrating environmental, social and governance (ESG) insights.

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Responsible Investing at AXA IM

Responsible Investing (RI) enables clients to align their investments with global megatrends that are changing the investment landscape.

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    Disclaimer

    This website is published by AXA Investment Managers Asia (Singapore) Ltd (ARBN 115203622) (“AXA IM Asia”). AXA IM Asia is exempt from the requirement to hold an Australian Financial Services License and is regulated by the Monetary Authority of Singapore under Singaporean laws, which differ from Australian laws.  AXA IM Asia offers financial services in Australia only to residents who are “wholesale clients" within the meaning of Corporations Act 2001 (Cth).

    This publication is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments, 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 publication 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 publication is provided based on our state of knowledge at the time of creation of this publication. 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.

    The rating issued 03/2022 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2022 Lonsec. All rights reserved.

    The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned ETL0171AU November 2021) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.

    The RIAA Certification Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations. The Symbol also signifies that the AXA IM Sustainable Equity Fund has adopted strict disclosure practices required under the Responsible Investment Certification Program for the category of Product Provider. The Certification Symbol is a Registered Trade Mark of the Responsible Investment Association Australasia (RIAA). Detailed information about RIAA, the Symbol and AXA Investment Managers methodology, performance and stock holdings can be found at www.responsibleinvestment.org, together with details about other responsible investment products certified by RIAA. The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.

    Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the AXA IM Sustainable Equity Fund. Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT). This publication has been prepared by AXA Investment Managers Asia (Singapore) Ltd (ARBN 115203622)(“AXA IM Asia”), to provide you with general information only. In preparing this publication, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither AXA IM Asia, Equity Trustees nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.