Responsible investing

At AXA IM Select we believe in the importance of investing responsibly. Recognising the influence companies can have on the world around them,  we aim to be aware of their actions and intentions when making our investment decisions. 

Understanding the growing interest from clients wanting to ensure their investments are being used to deliver good for society (or at least do no harm), we want to make a difference over the longer term by investing in managers that follow a responsible investment process. This ethos is implemented by integrating ESG (environmental, social and governance) due diligence in our investment process.
 

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.

As part of this, we have set goals on responsible investing which include:

• Ensuring the fund managers we select are implementing ESG considerations as part of their investment criteria.
• Making available investment options that meet the varying desires of our customers in the areas of Sustainability and Responsible Investing be that ESG integrated or sustainable options.
• Establishing appropriate governance to monitor processes and actions around Responsible Investing as a firm.

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 as Architas Limited since May 2018.

Up until 2021, signatories were awarded an overall score at the organisation level, and since joining we had been consistently given an A rating each year.

PRI currently uses a numerical system, which replaced their previous overall organisation score. The scoring continues to be communicated across individual modules and we received the results of our 2023 submission in January 2024.

• Key highlights from our latest assessment
• We achieved a higher than or equal to the median band, with a 4* rating achieved in 4 out of 5 modules
• Our modules that received the highest difference vs the median were Listed Equity Active, Listed Equity Passive and Fixed Income Active (all achieving a 4* rating)
• We received a 4* rating for Confidence Building Measures, equal to a median 4* rating and scored 3* (equal to the median) in Policy, Governance and Strategy (PGS)

In our previous submission (2021), we received either a 4 or 5 star rating across all modules
We are pleased with the results of our latest assessment. We 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.

Architas E.P.I.C Global Equity Opportunities Fund

The Architas E.P.I.C Global Equity Opportunities Fund allows investors to make ethical and prosperous investment choices (E.P.I.C), utilising AXA IM Select multi-manager expertise to bring together what they believe to be the best fund managers available into one product for individuals to invest in. The fund gives investors access to three major themes centred around digital transformation, health & wealth and sustainable planet.