At AXA IM Select we believe in the importance of investing responsibly. We recognise the impact companies can have on the world around them, and that it is our duty to ensure we are taking into account their actions when making investment decisions.
We understand the growing interest from investors who want to make sure that their money is being used to do good in the world, or at the very least is doing no harm.
We aim to make a difference over the long term by investing in managers who follow a responsible investment process. Whilst this ethos is what governs our approach, the way we put this into practice is through the integration of ESG (environmental, social and governance) due diligence in our investment processes.
How does AXA IM Select approach responsible investing?
As a multi-manager, we invest in a broad range of funds, rather than investing directly in companies. Therefore our approach involves making sure the funds we select for our fund of funds products are implementing ESG considerations as part of their investment criteria.
By using our influence as a big investor, we can help to direct investment flows into funds we believe are following ESG principles, and engage with the managers of those we think are falling short. A key part of our approach is to make sure that our funds can be successful for clients, whilst also having principles that reflect ESG integration.
UN Principles for Responsible Investment and AXA IM Select
The UN Principles for Responsible Investment (UNPRI) are a voluntary set of six investment principles, backed by the UN, under which signatories commit to incorporating ESG factors into their investment decisions. We are proud to have been a UNPRI signatory since May 2018.
Previously signatories were awarded an overall score at the organisation level, and since joining we had been consistently given an A rating each year.
For our latest submission the PRI introduced a new scoring system, changing from an alphabetical system to a numerical system and also removing the overall organisation score. Instead scoring is now communicated across individual modules. As a result of these changes additional time was needed by the PRI to address feedback from a large number of signatories and so we received the results of our 2021 submission in September 2022.
Key highlights from our latest assessment
- Across all 9 modules we received either a 4 or 5 star rating, with all modules scoring higher than the median.
- We received 4* rating for the Investment and Stewardship Policy, scoring higher than the median score.
- Our highest rated modules were across Private Equity, Infrastructure and Hedge Funds, all achieving 91% or higher.
- Our modules that received the highest difference vs the median were Listed Equity Passive, Fixed Income Passive and Hedge Funds.
We are pleased with the results of our latest assessment and believe it reflects our continued commitment to evolving and improving our responsible investment practices to keep up with the latest ESG trends and to help drive change across our industry. This includes working closely with the underlying managers in our portfolios to make sure they meet our standards and helping them to develop their approach where necessary.