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 low carbon
A more environmentally-conscious 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.
Innovative companies are creating solutions to address pressures on scarce natural resources and the need for greenhouse gas emission reduction.
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.
Investment in multi asset involves risks including the loss of capital and some specific risks such as counterparty risk, liquidity risk and credit risk.
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.
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