Brazilians have increasingly started to invest internationally. In this context, AXA Investment Managers and XP Investments have partnered to bring strategies focusing on technological disruption and sustainable investments. Their collaboration started in 2020 to launch feeder funds in Brazil and today it has grown to exceed 1 billion reals in assets.
“The strategy is at the forefront of where technological innovation and the need for a more sustainable world meet, and it will provide investors in Brazil access to a vast and diverse set of innovative business opportunities that aim to help reduce greenhouse gas emissions from the most polluting and harmful industries”, pointed out AXA IM in a press release.
In this sense, it has identified four key areas that represent the most attractive investment opportunities within the Clean Economy strategy: Low Carbon Transport, Smart Energy, Agriculture & Food and Natural Resources Preservation. “These sectors have the potential for long-term profitability and growth, while making a positive impact on the environment”, they said.
The asset manager believes that its focus on technological disruption was key to bring to Brazil a strategy focusing on companies that allowed our lives to continue during the lockdowns, including companies in fintech, the cloud, remote working, streaming, video games, artificial intelligence, etc. “Investors in Brazil have also become captivated by sustainable and socially responsible investing. We believe we are in front of a multi-decade growth opportunity in areas such as low-carbon transportation, renewable energy, and smart grids. Electric and Hydrogen fuel-cell battery technologies are very exciting. Other areas include Agri-tech, and the development of healthier and organic foods, recycling, and water preservation”, AXA IM commented.
The firm has currently more than $1 trillion in assets under management. Founded in 1997 in Paris, it has grown into a global powerhouse in asset management, with a presence in more than 20 countries and major investment centers in the US, UK, France, and Hong Kong.
Por Alba Menéndez
Por Funds Society, Madrid