What is multi-asset impact investing?
Impact Investing focuses on financing businesses and projects designed to have an intentional, positive, sustainable - and vitally - measurable effect on society and/or the environment, 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. Key to this is the concept of additionality - to qualify as a true impact investment, there is a requirement to prove that the investment achieves something that would not be achieved without it
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 sustainably-run, 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
AXA IM listed 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:
Intentionality
Investments should be made with an upfront objective of having a specific positive social or environmental outcome.
Materiality
Invest in companies where the positive outcomes are of material significance to the beneficiaries, the company, or to both.
Additionality
Decisions on allocating donations are judged on the likely ability to resolve unmet environmental and social needs.
Negative consideration
Company's corporate practices, or products and services, may significantly undermine the positive impact it is generating elsewhere.
Measurability
Company's corporate practices, or products and services, may significantly undermine the positive impact it is generating elsewhere.
We aim to enable our clients to invest in the companies and projects leading the transition to a more sustainable world.
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
US high yield low carbon
We believe the global economy has entered a ‘decade of transition’ towards a more sustainable, de-carbonised model.
Risk warning
No assurance can be given that the Multi Asset Impact Strategy will be successful. Investors can lose some or all of their capital invested. The Multi Asset Impact Strategy is subject to risks including counterparty risk, liquidity risk and credit risk.
Our responsible investing approach
Discover more about responsible investing with AXA Investment Managers
FIND OUT MOREDisclaimer
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.