AXA Investment Management flags ESG framework
AXA Investment Management has announced plans to launch a new environmental, social and governance (ESG) framework in Australia next year.
The framework is being launched off the back of a white paper released this week, 'Piloting ESG integration'.
The company said its goal was to integrate ESG factors across the spectrum of its multi-billion dollar, multi-asset investment capabilities.
It said the new framework was just one of the outcomes of AXA IM's ongoing multi-year pilot study to fully embed ESG factors into its equity investment and active stewardship practices.
Commenting on the move, visiting AXA Investment Mangers' Paris-based global head of responsible investment Matt Christensen said investors, consultants, regulators and asset managers were paying greater attention to the importance of ESG factors.
He said a focus on short-term returns and benchmark tracking had previously hindered ESG integration, which was understandable as investment committees were faced with time constraints and governance responsibilities.
"This has led them to rely on fund managers to demonstrate how ESG factors add value to investment strategies," Christensen said.
"Investors benefit most when their managers connect investment and stewardship functions - research, engagement and voting - in order to create tangible value," he said.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
