What is multi-asset impact investing?

A multi-asset investment strategy allocates capital across several asset classes in a diversified portfolio. The aim is to balance different asset class characteristics to achieve certain investment outcomes, such as growth, income or risk mitigation. These types of strategies usually adopt a flexible asset allocation approach in order to adapt to market changes.

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.

Sustainable Investing

We aim to enable our clients to invest in the companies and projects leading the transition to a more sustainable world.

Sustainable Investing

Clean Economy

Innovative companies are creating solutions to address pressures on scarce natural resources and the need for greenhouse gas emission reduction

Sustainable Investing

Green bonds

Green bonds are among the most interesting innovations of the last decade in the field of socially responsible investment products

Sustainable Investing

US high yield low carbon

We believe the global economy has entered a ‘decade of transition’ towards a more sustainable, de-carbonised model.

Sustainable Investing

Buy and maintain

Our goal is to give clients the ability to AIM for net zero and align with the Paris Agreement decarbonisation pathway.

Related Articles

Sustainability

The impact of war in Ukraine should power the push for net zero

  • by Chris Iggo
  • 28 March 2022 (5 min read)
Sustainability

How an ESG focus impacted fixed income returns in 2021

  • by William Mahoney
  • 14 February 2022 (5 min read)
Sustainability

Top ESG equities show their resilience in 2021

  • by Hina Varsani
  • 11 February 2022 (5 min read)
RESPONSIBLE INVESTING

Our responsible investing approach

Discover more about responsible investing with AXA Investment Managers

FIND OUT MORE

    Disclaimer

    This website is published by AXA Investment Managers Asia Limited (“AXA IM HK”), an entity licensed by the Securities and Futures Commission of Hong Kong (“SFC”), 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, sell or enter into any transactions in respect of any investments, products or services, and should not be considered as solicitation or investment, legal, tax or any other advice, a recommendation for an investment strategy or a personalised recommendation to buy or sell securities under any applicable law or regulation. It has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation, investment knowledge or particular needs of any particular person and may be subject to change at any time without notice. Offering may be made only on the basis of the information disclosed in the relevant offering documents. Please consult independent financial or other professional advisers if you are unsure about any information contained herein.

    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 such opinions, estimates and forecasts made will come to pass. Actual results of operations and achievements may differ materially. 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. Information herein may be obtained from sources believed to be reliable. AXA IM HK has reasonable belief that such information is accurate, complete and up-to-date. To the maximum extent permitted by law, AXA IM HK, its affiliates, directors, officers or employees take no responsibility for the data provided by third party, including the accuracy of such data. This material does not contain sufficient information to support an investment decision. References to companies (if any) are for illustrative purposes only and should not be viewed as investment recommendations or solicitations.

    All investment involves risk, including the loss of capital. The value of investments and the income from them can fluctuate and that past performance is no guarantee of future returns, investors may not get back the amount originally invested. Investors should not make any investment decision based on this material alone. 

    Some of the services listed on this Website may not be available for offer to retail investors.

    This Website has not been reviewed by the SFC. © 2022 AXA Investment Managers. All rights reserved.