AXA Investment Managers (AXA IM) has launched the AXA WF Multi Asset Optimal Impact fund. The fund invests in securities demonstrating a positive social and environmental impact while also aiming to generate strong financial returns as well.

The firm aims to positively contribute to a large spectrum of the UN Sustainable Development Goals (SDGs) to build a more sustainable future.

The fund can invest from nothing or all of its money in debt securities, including inflation-linked, green, social and sustainable bonds, although it will contain bonds as it has a 75 percent equities limit.

To build the investment universe, a combination of quantitative and qualitative filters is applied, alongside a combination of top-down Environmental, Social and Governance (ESG) research and bottom-up analysis, to select the most relevant companies. The portfolio’s contribution to these SDGs is measured, such as through the reduction of carbon emission or water intensity for instance.

Managed by Serge Pizem, Head of Multi-Asset at AXA IM, and his team, the fund is part of the Optimal Income range and 5 percent of its management fees will be donated to charities, according to the firm.

Mr Pizem said: “From both investors and companies, there is an undoubtable rising of awareness of the challenges facing society today from all areas of the ESG spectrum. The Multi Asset Optimal Impact fund focuses on finding businesses that are committed to create positive and measurable impacts on our society, in line with our impact investing approach. By integrating positive ESG criteria, and excluding certain assets, the impact investing element of the fund covers a broad range of complex social and environmental objectives that aim to build a better future, while our Multi-Asset approach gives us the ability to adapt allocation to the evolution of financial markets. In a nutshell, the objective of the fund is to be good for the people and good for the planet.”