People and Planet Equity
Investing in innovative companies that are addressing some of the world’s biggest challenges and have the potential to deliver long-term investment returns.
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 inequality, the rising cost of healthcare and cyber-insecurity.
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.
What's good for the world can be good for investors
This high-conviction, well diversified portfolio has the dual objective of generating 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 living standards for all could achieve strong earnings growth and shareholder returns over the long term as their growth is underpinned by enduring structural change and transition. We manage a truly global portfolio, investing across the full market capitalisation spectrum, seeking the companies that we believe are best placed to benefit from multi-decade growth opportunities, within a solid risk-monitoring framework. We focus on identifying high quality companies with a proven track record of innovation and execution. We believe this helps us find companies that could continue to make a positive contribution as well as financial performance.
Stock selection is bottom-up, based on rigorous analysis from our dedicated team of impact analysts and 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.
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Assessing impact
Intentionality
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.
Materiality
Invest in companies where the positive outcomes are of material significance to the beneficiaries, the company, or to both.
Additionality
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.
Negative Externalities
A company's corporate practices, or products and services, may significantly undermine the positive impact it is generating elsewhere.
Measurability
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.
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.
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.
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.
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.
Social progress
Invest in the companies providing strong social utility by making essential products and services better quality, more affordable and more accessible to all.
Risks
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.
Disclaimer
This promotional communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.
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.
The targeting of specific SDGs does not imply the endorsement of the United Nations of AXA Investment Managers, its products or services, or of its planned activities and does not constitute, explicitly or implicitly, a recommendation for an investment strategy.