AXA Impact Fund
Last updated 10 May 2020, by Impactyield.
AXA Impact Fund I if a fund of funds that invests in the core areas of Health, Education, and Financial Inclusion across a global mandate targeting the bottom of the pyramid population primarily in Africa, South and South East Asia and LATAM.
The Fund seeks financial returns through investments that intentionally generate measurable societal or environmental impacts to otherwise under-served populations.
Key impact metrics are defined per each impact theme and specific investment made to ensure mission alignment. Whilst focusing on the core 3 themes, due to the nature of the product, we have also gained exposure to and developed expertise on many other compelling thematics that we aim to address with future funds.
To achieve its objective, the Fund will be invested in a multi-asset portfolio (as described under the “Investment Strategy” in PPM).
• The Fund does not benefit from any guarantee or protection of either the capital invested by the Unitholder or of steady coupon payments upon the Fund’s termination or during its life-cycle. The Fund is targeting an IRR of 8-12%. p.a.
• Combining the expertise of an external manager selection / portfolio management team (focusing on financial returns); the responsible investment team (focusing on social / environmental returns) and the SOR team (focusing on the legal structure / process / governance etc.)
• We bring an institutional setup to asset allocation in the Impact universe by creating a hybrid Impact Investing team.
• Our approach is unique because it requires the full integration of different AXA IM business units in all stages of the investment process: selection, analysis, due diligence, monitoring and exit. This is to ensure all investment decisions are aligned to the impact mission. We have a global approach, but our focus is on frontier and emerging markets. Africa, S & S.E. Asia and LATAM are priorities
Key performance indicators
Total # of microentrepreneurs reached by MFIs in the portfolio
# of microentrepreneurs reached by funding provided by BOMF
Asset manager: AXA Investment Managers
Product track record: Fund has 9 years of track record
Target IRR: 8%
Committed Capital: 200,000,000 EUR (Euro)
Target return category: Risk-adjusted market-rate of return
Fund domicile: France
Product status: Closed - still investing
Inception year: 2013
Vintage year: 2013
Target close date: n.a.
Product term: 10 year
Assets under management: 200,000,000 EUR (Euro)
Investment size: Min: 0; Max: 0; Avg: 0
Currency of investments: EUR (Euro)
Currency for fund / product figures: EUR (Euro)
Fund investments to date: 16
Fund investments to date exited or repaid: 0
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Other Institutional Investors
The fund will pursue its investment objective by investing in Health, Education and Financial Inclusion. We have also developed expertise on many other compelling themes that we aim to address with future funds.
Examples of items metrics intended to be measured include:
Health-# of low income receiving treatment
Education-low income graduation rates
Financial Inclusion-# of underserved accessing finance
Success is only achieved if both the expected financial and social returns are made. The underlying investments are regularly monitored and we report to our client on a quarterly basis to ensure the investments are performing in line with expectations from both a financial and social / environmental perspective.