AXAIM launches ESG product
Fund manager, AXA Investment Managers (AXA IM) has launched what it describes as its first ever fully integrated ESG SmartBeta strategy in the Australian market.
It said the product, the AXA IM ACWI SmartBeta Equity Fund offered long term investors a more efficient way of capturing equity market beta, while avoiding the limitations of both market cap-weighted indices and alternative weighting schemes.
The announcement said the product would be powered by the quantitative investment arm of AXA IM, AXA Rosenberg and was now accessible via the Asgard platform, having been seeded with A$55 million from local Australian Financial Services Licensee, Financial Index Wealth Accountants (FIWA).
Commenting on the offering, AXA Rosenberg director of investment strategy, Kathryn McDonald said while smart beta and ESG might seem unrelated, both approaches reflected a move by investors away from standard index tracking.
“Overlaying smart beta with ESG is quite a new and novel concept but it’s one we feel is a very positive step. Our extensive research shows ESG smart beta can offer investors a lower risk and higher return than index investing, along with a defensive strategy with improved diversification and ESG performance - an attractive concept for long term investors.”
Recommended for you
ASIC has issued infringement notices to two AFSLs over financial advisers providing personal advice while they were unregistered.
Australian retirees could increase their projected annual incomes by as much as 51 per cent through comprehensive financial advice, according to a Vanguard study, but cost continues to be an issue.
AMP has announced a senior appointment to its North leadership team, reinforcing the firm’s commitment to the advice industry.
Despite the financial adviser exam being rooted in ethics, two professional year advisers believe the lack of support and transparency from the regulator around the exam is unethical.