Defined contribution master trust Smart Pension, London, is partnering with AXA Investment Managers on a biodiversity fund, the organizations said in a joint news release Tuesday.
The strategy for the new AXA WF ACT Biodiversity fund focuses on four key areas aimed at helping to prevent biodiversity loss: sustainable materials, land and animal preservation, water ecosystems, and recycling and recirculation, Rachel Basarab-Horwath, global head of pensions at AXA IM, said in the release.
The new strategy is part of AXA IM's Listed Impact Equity strategies. Elements of AXA IM's Clean Economy strategy focus on biodiversity loss but are not specifically being held for biodiversity mitigation and protection, which the new fund will target, a spokesman said in an email.
The new biodiversity fund will invest in listed companies that effectively preserve and mitigate life on land, water and air by providing sustainable alternative products and services, the spokesman said.
As of June 30, AXA Investment Managers had €823 billion ($863.2 billion) under management, including €563 billion of ESG-integrated, sustainable and impact assets at the end of December 2021.
Paul Bucksey, CIO of the £2.2 billion ($2.47 billion) Smart Pension master trust, said that its flagship growth strategy has invested more than 70% in sustainable funds that are expected to help it achieve a 2040 net-zero emissions goal, and that adding the biodiversity strategy should help improve results further for participants.
"We want to help them secure not just long-term financial growth but also a safer, healthier world in which they can enjoy retirement," Mr. Bucksey said in the release.