Our approach and offering

At AXA Investment Managers we maintain a three-tiered approach to RI and impact investing.

At AXA Investment Managers (AXA IM) we believe that responsible investment (RI) can not only deliver sustainable, long-term value for clients but that it can also make a positive impact on society.

How do we categorise our RI offering?

We segment our RI offering into three sections; ESG embedded, ESG integrated and sustainable investing. Below we outline what this means and how this is implemented across at AXA IM.
 


ESG embedded

All of our funds (excluding index and fund of hedge funds) benefit from internal responsible investment policies, active engagement and proxy voting. All portfolios benefit from the AXA IM RI exclusion policy, which include coal, palm oil, controversial weapons and soft commodities.

ESG integrated

Our ESG analysis is integrated across all our investment platforms which allows our investment teams to take account of ESG risks and opportunities when making investment decisions that are tailored to clients’ objectives. ESG integrated mutual funds also apply our ESG standards policy, with additional exclusions on tobacco, defense, UNGC breaches and poor ESG quality. Additional ESG KPIs are displayed in the reporting of these funds2.

Sustainable investing

This includes assets within the eligible ESG universe, as well as impact investing assets. Impact investing goes beyond ESG risk monitoring and focuses on financing businesses and projects that are designed to have intentional, positive and measurable impacts on society while simultaneously delivering financial market returns.

 

Source: AXA IM as at 31.12.2018. Non audited figures.
1 Starting in Q1 2019
2 Available upon request

Our approach

  • Avoid

    Avoid exposures that conflict with your principles & values

  • Identify

    Identify ESG risks & opportunities

  • Invest

    Invest by incorporating ESG analysis

  • Impact

    Impact with outcome-oriented investments

  • Influence

    Influence through in-depth research and engagement

ESG integration: a firm wide approach

ESG integration at AXA Investment Managers is developed using input from teams across the business and ensuring that ESG at part of our DNA.

The illustration below demonstrates the holistic approach to ESG at AXA Investment Managers.

AXA IM ESG integration

 Corporate Culture

Corporate responsibility and RI are part of AXA IM’s DNA, ESG training is available for employees and our management board have a strong commitment to ESG.

Voting

Voting is overseen by a corporate governance committee which is attended by representatives from the RI and investment teams. Our voting policy reflects our convictions as a responsible investor, in particular with regards to climate change and gender diversity.

 Company and Thematic Engagement

Engagement provides us with the opportunity to act as key influencers
towards creating better and more responsible corporate behaviours and disclosure, using our ongoing dialogue with company management teams as an active engagement tool.

 Frameworks, Solutions and Tool

Governance has been developed to ensure a successful and consistent approach to ESG integration across AXA IM. This approach leverages common tools and solutions, such as ESG scoring methodologies and reporting for instance.

 

 Investment Decision

Investment professionals have access to the ESG scores of issuers as well as KPI’s in their front office and analytical reporting tools.

 Thematic ESG Research

Our RI team analyses the thematic research on topics such as climate change, human capital and diversity. This research helps inform engagement activities as well as investment decisions.

 Proprietary ESG Scoring

We have developed proprietary ESG scoring methodologies for several asset classes. As an example, over 7,200 companies in 100 countries are scored through our corporate ESG scoring framework*.

Analysis and Reporting

Transparency is a central dimension of our ESG integration strategy. More detailed ESG reports available for our ESG integrated and responsible investing (RI) funds. These reports contain additional ESG KPI’s, as well as other relevant information such as voting or engagement reporting.

*Source: AXA IM as at 30.06.2018 

Our framework and scoring methodology

ESG integration has seen rapid growth over the past few years, and this section looks at how we at AXA Investment Managers approach this change and our five-step approach to our scoring methodology.

How does ESG impact our investment teams?

Leveraging our two decades of responsible investing experience, we are integrating ESG analysis into all our investment platforms, providing fund managers with access to proprietary ESG scores and key performance indicators (KPIs) in their front office tools, as well as additional data and research.

The central responsible investing (RI) team focuses on thematic research, corporate governance and shareholder engagement as well as on developing quantitative solutions. Headed by Matt Christensen, the team is comprised of 14 experienced professionals, including 10 RI analysts, with an average of 13 years’ experience*.

Across our platforms we have dedicated RI resources working directly with fund managers who continue to be fully empowered and accountable for their process and results.

*AXA IM as at 30/06/18

Fixed income

The fixed income and high yield teams have reinforced their credit analysis team, and each has been trained to incorporate ESG considerations in their analysis of issuers.

Framlington Equities

Framlington Equities has a team of three specialists dedicated to ESG, who support fund managers on a day to day basis in the analysis of companies.

Rosenberg Equities

Rosenberg Equities has a dedicated ESG team, comprising of five ESG specialists headed by Kathryn McDonald.

Multi-asset

Our multi-asset team work closely with the equity and fixed income platforms to integrate ESG, through two major pillars.

ESG research & publications

Empower investors with key insights on responsible investment trends, as we look at how investments could help foster prosperity for people and prosperity for the planet.

A detailed look at impact investing

Go beyond ESG integration towards a positive financial and societal impact.