What does it mean to invest in social progress?
Social awareness is a growing topic that can lead to significant structural changes in society. Acting for social progress means investing in companies that offer products and services that aim to reduce the social cost of some the challenges the world is facing such as demographic shifts and climate change, both in developed and emerging countries. Indeed, we are not all equal in the face of the most basic needs such as access to housing, health care or education.
Why invest?
It is possible to act by investing in companies capable of offering solutions to social challenges. Growing collective awareness can create potential investment opportunities. At AXA IM, our approach is focused on the search for long-term value, both financial and extra-financial, with the objective of producing a positive and measurable impact on society.
Investment themes
Access to low-cost housing, infrastructure, financial and digital inclusion.
For example, what is lacking in emerging countries is not business creation initiatives but rather sources of financing. More and more players are developing micro-credit. Similarly, the World Bank has estimated that by 2022, one billion people are expected to remain unbanked. Addressing the needs of this still underserved population would involve improving access to financial services, which represents a potential opportunity.
Protection includes health care, well-being and safety.
As the saying goes, prevention is better than cure. The COVID-19 pandemic has fundamentally accelerated demand for robust preventive measures - as well as highlighting the importance of public support for scientific research. This topic has become a major concern for individuals and a priority of governments.
Social elevation encompasses human capital management, training and entrepreneurship.
In our opinion, companies need diversity across gender, backgrounds and experience to remain innovative and successful. In this area, we see a multitude of investment opportunities in companies that have made a difference to establish themselves as a leader in their market, or companies that offer ‘all-in-one’ digital payment solutions, online learning, childcare or educational consulting.
How do you measure the impact of your investment?
To measure the social contribution of an investment strategy, we rely on the reading grid proposed by the United Nations. The impact report of our social progress strategy shows the extent to which the companies in which we invest contribute to the Sustainable Development Goals (SDGs) specifically associated with social challenges. Within our strategy, the direction of our investment decisions is aligned with the SDGs in their social dimension.
The targeting of specific SDGs does not imply the endorsement of the United Nations of AXA Investment Managers, its products or services, or of its planned activities and does not constitute, explicitly or implicitly, a recommendation for an investment strategy.
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.
Multi-asset impact investing
A world of opportunities to help create a positive impact for people and planet while generating returns.
US high yield low carbon
We believe the global economy has entered a ‘decade of transition’ towards a more sustainable, de-carbonised model.
Social Bonds
Rapid growth in the social bonds market offers a compelling opportunity to invest in the social dimension of the transition to a low carbon economy.
Biodiversity
New nature-related policies and regulation being developed will drive new investment opportunities as corporates commit to biodiversity positive business models.
Risks
No assurance can be given that our equity strategies will be successful. Investors can lose some or all of their capital invested. Our strategies are subject to risks including, but not limited to: equity; emerging markets; global investments; investments in small and micro capitalisation universe; investments in specific sectors or asset classes specific risks, liquidity risk, credit risk, counterparty risk, legal risk, valuation risk, operational risk and risks related to the underlying assets.
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.
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