AXA Investment Managers (AXA IM) has unveiled a new smartbeta equity ESG fund to support responsible investment while reducing risk.
The new Axa World Funds Global SmartBeta Equity ESG fund will target between 1% and 2% annualised excess return as well as nearly 80% of market volatility over a full cycle.
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In addition, it also seeks a higher environmental, social and governance (ESG) score, and a lower carbon footprint.
AXA IM smartbeta client portfolio manager Jonathan White said: "We believe that our smartbeta strategy should be a long-term holding for clients, however, given the current high levels of political uncertainty and increased volatility following the Brexit vote, we believe that the lower risk features could be especially attractive at this time.
"Our smartbeta strategy is designed to deliver a more advanced low volatility approach, taking into account earnings volatility as well as price volatility. Importantly, this allows investors to benefit from a lower risk profile in ‘down' markets, as well as capturing returns in rising markets."
The new offering is currently available in institutional share classes, with a retail share class version is slated to be introduced later in 2016.
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By GlobalDataAXA IM global head of responsible investing Matt Christensen added: "Not only is the incorporation of ESG criteria consistent with clients' fiduciary duty, but we believe the strategy is attractive in terms of diversification, risk monitoring and cost considerations."
