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
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
