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 corporate regulator has cancelled the AFSL of a Queensland-based financial services provider, having held the licence since mid-2016.
Advisers need to closely scrutinise how much volatility exists in private assets during their portfolio construction and how this is demonstrated by the providers, according to commentators.
Consulting firm Bain & Company has shared how it believes the wealth management industry can be transformed and three questions firms should consider.
Prime Minister Anthony Albanese has confirmed who will succeed Stephen Jones to serve as the Assistant Treasurer and Financial Services Minister.
