Multi Asset Impact Investing
What is Multi-asset impact investing?
A multi asset investment strategy allocates between several asset classes across a diversified portfolio. The aim is to generate investment returns over the long term, whilst managing the risk of capital loss. These types of strategies usually adopt a flexible asset allocation approach in order to adapt to market changes.
Impact Investing focuses on financing businesses and projects designed to have an intentional, positive, sustainable - and vitally - measurable effect on society, while simultaneously delivering financial market returns. By integrating positive environmental, social and governance (ESG) criteria, and excluding certain assets, impact investing covers a broad range of complex social and environmental objectives that aim to build a better future.
Multi asset impact investing combines both approaches in order to produce an adaptable, responsible investment portfolio that delivers sustainable financial results.
Why Consider Multi-asset impact investing?
Concerns over the multiple challenges the world is facing, such as climate change and a scarcity of natural resources, are on the rise. As a result, an increasing number of investors are interested in investment vehicles that can help to protect both society and the planet, while generating investment performance. Given these new challenges and complexities, it is vital investors have access to solutions which can help them navigate a highly changeable market environment, and investment in multi-asset could be a key solution.
In a world undergoing significant social and environmental change, a mainstream movement towards responsible investing creates new opportunities. At AXA IM, we strongly believe that investing in green and socially responsible projects and companies can be an excellent way to help deliver long-term sustainable returns. In our view, an active approach to impact investing in virtuous, innovative and/or transitioning businesses, can help to achieve consistent, long-term sustainable growth.
In a multi asset portfolio, we can access fixed income and equity opportunities around the world. In fixed income, we can hold green bonds and transition bonds to finance projects with specific and measurable impact. In equities, we can unearth companies that offer a product or service that helps address the planet’s biggest challenges.
A flexible multi asset approach has the potential to adjust asset allocation dynamically to better navigate market conditions and the changing macroeconomic environment. Combining this with impact investing presents the possibility to find investment opportunities that are not only good financially, but also good for the planet and good for people.
Our Multi-asset impact investing strategy
Our Multi Asset Impact strategy leverages the breadth and depth of AXA IM’s investment expertise across geographies and asset classes, combined with our proprietary impact approach and ESG research and scoring.
AXA IM Impact Approach
In simple terms, our impact approach is about investing in prosperity for people and prosperity for the planet. We assess investments using our listed impact framework which consists of 5 key pillars:
This impact framework is integrated into our multi asset team’s investment process which aims to capture global growth through long-term convictions at both asset allocation and security selection levels. The team then use the flexibility of the strategy to navigate changing market conditions and apply a multi-tiered approach to risk mitigation.
The strategy’s primary goal is to deliver sustainable and attractive returns through an active multi-asset approach, while generating a positive and measurable impact.
We aim to provide transparent and measurable impact metrics focused on a wide range UN Sustainable Development Goals contribution towards environmental and societal issues, including:
Our ACT Climate Range strategies
US High Yield Bonds Low Carbon
A more environmentally- consccious way to invest in the US high yield bonds market
A transparent tool for supporting the transition to a low-carbon economy and managing climate risks without sacrificing financial return
Huge demographic and environmental changes are forecast to make CleanTech a $1.3 trillion market by 2020
Climate Aware Investing
Governments around the world are seeking to limit global warming by aligning economies with the goals of the 2015 Paris Agreement
At AXA Investment Managers, we believe Responsible Investing can deliver sustainable, long-term value for clients and create a positive impact on society