Do you want to invest in social progress? Here’s how.
- 31 May 2022 (5 min read)
Catch up with Anne Tolmunen, Portfolio Manager, AXA IM Equities
What does ‘investing in social progress’ mean?
Investing in social progress means seeking to identify the areas of society which provide the most fundamental social needs and actively investing to improve the equality of access globally. In this insight, we refer to the United Nations (UN) Sustainable Development Goals (SDGs), more than half of which have a social dimension.1
We identify and invest in companies that contribute to these SDG targets. In our strategy there are 3 main sub themes:
- Social and economic inclusion
- Protection of people, access to health care, physical protection and prevention.
- Social elevation.
In practical terms, what kind of companies are we talking about?
The investment opportunities here are very diverse. Investments are made in all regions and in many industries. For example, Capitec Bank is a bank in South Africa's emerging markets which offers its services at a lower cost than the country's banks, increasing access to basic financial services. It has also invested heavily in digital technology as its bank accounts are increasingly accessed via a mobile phone.
Within Europe, the company Eurofins Scientific has a network of analytical laboratories and works on the prevention and detection of infections.2
Can we seek performance from investing in social progress?
Yes. We believe that we are at an inflection point where there are certain structural trends which can generate extra financial value, in addition to financial performance over the long term. These aims are not incompatible. Real investment opportunities can be found from the growing democratisation of technology, a trend from which new business models are emerging. There are many innovations in the medical and healthcare space. Within emerging markets, the middle class is expanding and becoming increasingly capable to spend more on their needs.
Why does AXA IM believe in investing in social progress?
At AXA IM, we believe in the importance of equality of access to key societal needs and have been investing in the social sector for 30 years. As a responsible investor, we seek opportunities which drive social progress within our global community. We have reached the point where there are real and increasing opportunities and business models that will create financial and extra financial value over the long term. That is why we have invested in more resources and analysts to develop our social impact management skills within our comprehensive suite of responsible investment capabilities.
Who can invest in social progress?
Social progress is available to investors large and small, and anyone who is prepared to invest for the long term and cares about their social footprint. This is the case with more and more clients, with particular concern about social inequality growing amongst the younger generations.
What is the key takeaway point about investing in social progress?
Positive impact management is on the rise, so now is the time to consider adding impact investments to portfolios. We hope the social aspect will follow the path of the environmental aspect and attract more enthusiasm for this very important subject. Due to the effects of COVID-19, the issues caused by social inequality has moved to the top of the priorities of governments, businesses, and also citizens.
- RnVsbCBkZXRhaWxzIGFib3V0IHRoZSBTREdzIGFyZSBhdmFpbGFibGUgb24gdGhlIFVOIHdlYnNpdGU6IFRoZSBTdXN0YWluYWJsZSBEZXZlbG9wbWVudCBBZ2VuZGEgLSBVbml0ZWQgTmF0aW9ucyBTdXN0YWluYWJsZSBEZXZlbG9wbWVudA==
- UmVmZXJlbmNlcyB0byBjb21wYW5pZXMgYXJlIGZvciBpbGx1c3RyYXRpdmUgcHVycG9zZXMgb25seSBhbmQgc2hvdWxkIG5vdCBiZSB2aWV3ZWQgYXMgaW52ZXN0bWVudCByZWNvbW1lbmRhdGlvbnMu
Disclaimer
This website is published by AXA Investment Managers Asia (Singapore) Ltd. (Registration No. 199001714W) for general circulation and informational purposes only. It 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. It has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation or particular needs of any particular person and may be subject to change without notice. Please consult your financial or other professional advisers before making any investment decision.
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. Past performance is not necessarily indicative of future performance.
Some of the Services and/or products may not be available for offer to retail investors.
This publication has not been reviewed by the Monetary Authority of Singapore.