AXA IM unveils global equity strategy focused on gender diversity
Matt Christensen
AXA Investment Managers (AXA IM) has announced the launch of a new impact-style investment strategy designed to capitalise on companies promoting gender diversity.
The move ties into the growing global trend towards investments that look to solve social issues, while providing similar risk-return characteristics to traditional managed equity funds.
The strategy – The AXA World Funds – MiX in Perspectives – aims to generate long-term capital growth from companies that create financial and societal value by fostering gender diversity and leveraging the increasingly important economic role of women.
The strategy – The AXA World Funds – MiX in Perspectives – aims to generate long-term capital growth from companies that create financial and societal value by fostering gender diversity and leveraging the increasingly important economic role of women.
Following the official launch in Europe last week, AXA IM intends to open an Australian domiciled pooled fund for the same strategy this year. Speaking at a media briefing yesterday, AXA IM’s Paris-based Global Head of Responsible Investment Matt Christensen said the new strategy allows investors to benefit from the proven link between gender diversity at a senior management level and a company’s financial performance.
“Research[1] has shown $12 trillion could be added to global GDP by 2025 by investing in the advancement of women’s equality. We saw a great opportunity to create a ‘gender diversity’ impact strategy that favours investments in companies that demonstrate a strong commitment to promoting women in senior management and leadership positions,” Mr Christensen said.
The rise and rise of impact investing
According to Global Impact Investing Network[2], impact investing is expected to grow from US$50 billion to US$2 trillion by 2025. Mr Christensen said there was growing interest in better capturing how investment impact is measured beyond financial criteria.
“Until quite recently impact investing was only really cropping up in the alternatives space, but it is now increasingly prominent across a broader set of asset classes. For example, in Australia we are now seeing the rise of social impact bonds,” Mr Christensen said.
All eyes on French RI regulation
Mr Christensen added that since the 2015 COP21 initiative, investors globally and in Australia were keeping a watchful eye on French RI regulation.
“French regulation has boosted the development of RI by focusing on two key aspects. The first relates to how relevant parties are integrating environmental, social and governance (ESG) criteria in their investment strategy. The second aspect specifically focuses on environmental criteria, and encourages investors to explain the measures they have implemented to support the transition towards a low-carbon economy on an annual basis.
“The EU is currently reviewing this model for a wide-reaching legislative requirement, including a working group that will publish recommendations for 2018 as policy guidance,” Mr Christensen added.
Craig Hurt, Director, Australia and New Zealand at AXA IM said Australia was following the global trend of mandating companies to disclose their ESG performance.
“We see the expansion of Australia’s pension fund regulation to include specific RI requirements as a very positive step for the local RI sector.
“Local investors have become even more sophisticated in the way they view RI vehicles with a gradual shift from a traditional model of negative screening to an active desire to contribute to the greater good of society,” Mr Hurt said.
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