NEW YORK, March 21, 2022 – AXS Investments, a leading asset manager providing access to alternative and sustainable investments for growth, income and diversification, today announced the acquisition of the ETF industry’s first-ever certified carbon-neutral ETF (CHGX), which today joins the fast-growing lineup of AXS funds.

CHGX has earned a 5-Globe Morningstar Sustainability Rating, the highest possible rating, putting the fund at the top of the list for investors seeking the crème de la crème of ESG exposure to buttress their portfolios.

The acquisition of CHGX by AXS comes on the heels of ESG and  Sustainable funds attracting a record $69.2 billion in net flows in 2021, a 35% increase over the previous record set in 2020. Sustainable U.S. large-blend funds also saw greater total and risk-adjusted returns versus their traditional peers in 2021, as well as over the trailing three- and five-year periods.

CHGX has approximately $110 million in assets under management as of March 10, 2022, with an investor base of financial advisors and investors who have passionately embraced the robust standards for environmental, social and governance (ESG) developed by Change Finance, the fund’s sub-adviser and globally-recognized leader in sustainable investing and shareholder advocacy. CHGX is a core ESG-focused equity portfolio holding with an underlying methodology that uses traditional ESG measures along with 125 specific criteria to identify companies that have a positive impact on key sustainability metrics, such as land, water, air, biodiversity, people and ethics.

“2021 was a record year for inflows into ESG and sustainability-focused investments and, at the same time, the market has shown little tolerance for greenwashing,” said Greg Bassuk, CEO of AXS Investments. “At AXS, we too have no tolerance for greenwashing, which is why we are building a fund family that has some of the most robust ESG and sustainability standards in the industry, reflective in funds like CHGX. We’re excited to partner with the Change Finance team, worldwide leaders in sustainable investing and shareholder advocacy. Their insights will be invaluable as we continue to offer investors strategies that raise the bar for ethics, governance and planet sustenance, emblematic of the approach underlying CHGX.”

“We’re thrilled to partner with AXS Investments, a team whose longtime success in the ETF space is unparalleled,” said Andrew Rodriguez, CEO and Chief Investment Officer of Change Finance. “As we are trailblazing in developing highly robust sustainable strategies, we chose to partner with AXS as an asset management leader that shares our conviction in the highest integrity ESG and sustainable investments, as well as our mutual commitment to setting new standards for ethics, engagement and sustainability in our products, our workplace and our broader U.S. and global communities.”

The acquisition of CHGX follows the successful launch of the AXS Astoria Inflation Sensitive ETF (PPI), an actively managed fund launched by AXS in December. PPI  provides investors with a first-of-its-kind, one-stop inflation strategy that seeks to hedge against inflation and generate appreciation through inflation-sensitive investments. PPI has performed as designed and has proven popular with investors, amassing more than $40 million in assets in fewer than 40 business days since its launch.

AXS Investments is a recognized thought leader in sustainable investing. The firm founded the Institute for Sustainable Investing in 2020 as a global center for research, education and thought leadership on sustainable and impact investing. The Institute is a collaboration with academia, business and government to help people, corporations and communities experience sustainable financial well-being and to mobilize education and resources that drive immediate and long-term sustainable outcomes.

 

About AXS Investments

AXS Investments is a leading alternative investment manager providing a diversified family of alternative investments for growth, income and diversification. The firm empowers investors to diversify their portfolios with investments previously available only to the largest institutional and high net worth investors. The investor-friendly AXS funds are time-tested, liquid, transparent and managed by high pedigreed portfolio managers with long and strong track records. For more information, visit www.axsinvestments.com.

There are risks involved with investing including the possible loss of principal. Past performance does not guarantee future results. Investors should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. To obtain a prospectus containing this and other important information, please click here to view or download a prospectus online. Read the fund’s prospectus carefully before you invest.

Morningstar Sustainability Rating: Out of 1,567 large growth funds as of 11/30/2021. Based on 99.3% of AUM. Data is based on long positions only. A measure of how well the portfolio holdings are managing their ESG Risk relative to the portfolio’s Global Category peer group. Data is based on long positions only as of 12/31/2021. Sustainalytics provides company-level analysis used in the calculation of Morningstar’s Historical Sustainability Score, which is a weighted average of the trailing 12 months of Morningstar Portfolio Sustainability Scores.

The Certified Carbon Neutral Fund certification was bestowed by EthosESG, who audits the carbon footprint of CHGX and carbon offset purchases at least annually before issuing the Carbon Neutral Fund designation. See www.ethosesg.com.

There is no guarantee the sectors or asset classes the advisor identifies will benefit from inflation. Fund may invest a larger portion of its assets in one or more sectors than many other funds, and thus will be more susceptible to negative events affecting those sectors. Market and Equity Risk: The value and market price of an equity security may decline due to general market conditions that may or may not be specifically related to a particular company or industry. Passive investment risk: The Fund invests in securities included in the Index regardless of investment merit. It is not actively managed and generally will not attempt to take defensive positions in declining markets. ESG Investing Risk: The Fund’s ESG policy could cause it to make or avoid investments that could result in the portfolio underperforming similar funds that do not have such policies. Market Cap Risks: Companies with larger capitalization may be unable to attain the high growth rates of successful, smaller companies during periods of economic expansion. The securities of mid-capitalization companies may be subject to more abrupt or erratic market movements and may have lower trading volumes or more erratic trading than securities of larger, more established companies. Real Estate Risk: Investments in Real Estate Investment Trusts (REITs) involve risks such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments.

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