Asset class news

AXA Investment Managers selected by Foresters Friendly Society to manage Multi-Asset Mandate

  • 04 July 2019

Foresters Friendly Society (Foresters), the mutual insurance provider protecting families since 1834, has appointed AXA Investment Managers (AXA IM) to manage a £175 million multi-asset mandate on behalf of its members, with capacity for the mandate to grow to £300m in the medium-term.

The mandate will be led by portfolio manager Andrew Etherington, and managed across non-profit, with-profits and unit-linked funds. 80% of the mandate will be invested in traditional assets, allowing for a 20% allocation to AXA IM’s strong alternative investment offering, in order to provide Foresters with additional diversification and potential return for its policyholders.

Furthermore the mandate is designed to allow for Foresters’ growth plans and enhancement of ESG integration, an area in which AXA IM is highly skilled, with two decades of RI experience. Last year AXA IM announced integration of ESG analysis across all of its investment platforms.

ESG investment has increased significantly over the past few years, with Foresters taking a keen interest in the heightened social conscience of the investment community.  The appointment of AXA IM broadens the opportunities to invest in alternative asset classes, enhancing investment returns whilst keeping risk profiles within appetite, but also allows Foresters to explore and improve their ESG offering to support the increasing demands of investors.

In June 2019, Foresters Friendly Society won Best Small Insurer at the Insurance Investment Exchange awards. Foresters were recognised for delivering real value via their investment portfolios and minimising volatility in an increasingly complex environment.

Rachel Hardy, Finance Director at Foresters Friendly Society, commented: “We are pleased to have appointed AXA IM to manage our multi-asset mandate on behalf of our members. This appointment facilitates our expansion into ESG, which is an area of great importance across the investment industry as well as to our members whose interests are at the forefront of our services.”

John Stainsby, Head of UK Institutional Client Group, said: “Being appointed by a historically important mutual such as Foresters Friendly Society is a great endorsement of our third party offering, and best in class insurance asset management capabilities. Today is an exciting time for UK mutuals as they look to innovate and grow their member base. We believe that AXA IM are well placed to support in this development. We look forward to working closely with the Foresters team, and growing the relationship further.”

    Note to editors

    About AXA Investment Managers

    AXA Investment Managers (AXA IM) is an active, long-term, global, multi-asset investor. We work with clients today to provide the solutions they need to help build a better tomorrow for their investments, while creating a positive change for the world in which we all live. With approximately €750 billion in assets under management as at end of March 2019. AXA IM employs over 2,350 employees around the world and operates out of 30 offices across 21 countries. AXA IM is part of the AXA Group, a world leader in financial protection and wealth management.

    About Foresters Friendly Society

    Foresters Friendly Society was founded in 1834 and is a mutual organisation. The Society has approximately 70,000 members across 189 UK branches. The Society offers a range of financial savings, investment and insurance products, as well as a range of member benefits, including discretionary educational grants and healthcare support.

    The Society’s mission is to be the most member-centric financial mutual in the UK.  Reinforcing its benevolent approach and member-centricity, in 2018 Foresters paid out over £1.1million back to its members in the form of discretionary grants and charitable donations.

    This is in addition to the £2.2million paid out in the form of final bonuses to its policyholders and £1.1million in annual bonuses added to their guaranteed benefits. 

    Supporting charitable causes and getting involved in community activities is an essential part of the Society's work. Each year the Society supports a charity and its fundraising activities are focused on supporting that charity. Action on Hearing Loss was the chosen charity for 2018/2019, and over £60,000 has been raised by members to date. Rays of Sunshine is the chosen charity for 2019/2020.

    Foresters Friendly Society is the trading name of The Ancient Order of Foresters Friendly Society Limited which is an Incorporated Friendly Society (Registration No. 511F) and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Registration No. 110029).

    Membership benefits are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority and are regularly reviewed to ensure they are relevant to members. 

    Foresters Friendly Society is on:

    Twitter: @ForestersFriend

    Facebook: ForestersFriendly

    LinkedIn: Foresters Friendly Society

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