AXA IM launches AXA ACT Green Short Duration Bond fund for UK investors
- AXA Investment Managers (AXA IM) currently manages €15.8bn of green bonds1
- Sustainable wealth manager EQ Investors has committed early stage capital to the new fund
AXA Investment Managers (AXA IM) announces the launch of the AXA ACT Green Short Duration Bond fund, that aims to invest in short-dated green bonds which can offer the same returns as a comparable conventional bond plus the added benefit of enabling projects with environmental benefits.
The launch of the AXA ACT Green Short Duration Bond fund aligns the strategy with AXA IM’s short duration investment philosophy which has been tried and tested across its suite of short duration products. The product should appeal to investors looking to capture potential income in short-dated securities while minimising default risk. Short dated bonds not only reduce sensitivity to changes in interest rates, but also overall volatility.
In line with AXA IM’s dedicated green bond offering, this fund also aims to finance the transition to a low carbon economy by focusing exclusively on green bonds that have been validated by AXA IM’s proprietary green bond framework2 . EQ Investors, the bespoke sustainable investor for charities and high net worth individuals, has committed to investing capital in the fund.
Commenting on the launch, Johann Plé, manager of the AXA ACT Green Short Duration Bond fund said: “As the demand for green bonds continues to grow, with the market now worth over $1 trillion3 , we believe that there is an opportunity to help responsible investors meet their differing needs through a variety of green bond products. Our short duration product meets the immediate need for a diversified, low volatilty fund with limited interest-rate risk that has all the benefits of green bond exposure. This will help investors to potentially reduce their exposure to climate risks and invest in companies that are working towards a greener society for all.”
Also commenting, Damien Lardoux, Head of Impact Investing at EQ Investors, said: “It’s great to work with AXA IM and support the launch of their new Green Short Duration Bond fund. The climate crisis affects us all, and this new fund deepens the green bond market and makes it easier for investors to finance projects that will fundamentally change our economy and environment.”
Using AXA IM’s proprietary green bond framework, the fund’s environmental impact will be centred on four main pillars which aim to reduce energy consumption, produce clean energy and preserve our ecosystem:
- Green Buildings
- Sustainable Ecosystem
- Low Carbon Transport
- Smart Energy Solutions
The fund will primarily support the following United Nations Sustainable Development Goals (“UN SDGs”): climate action (SDG13), sustainable cities and communities (SDG 11), industry innovation and infrastructure (SDG 9).
“The combination of our fixed income and RI experts enables us to make a holistic assessment of each issuer, from its ESG track record and quality, to its demonstrable environmental benefits of projects financed and to its use of bond proceeds. The team takes fundamental credit views, with in-depth credit market knowledge gained across different market cycles, based on strong relationships with key issuers developed over the years,” added Johann Plé.
The fund is part of AXA IM’s ACT fund range4 and applies AXA IM’s impact approach for listed assets, where the investment decisions are designed to have an intentional, positive, measurable and sustainable impact on society and/or the environment while simultaneously aiming to deliver financial returns. Five percent of the management fees paid by the fund will also be donated by AXA IM to several charities.
In addition, AXA IM is a significant supporter of the growing Green Investments market – with nearly €32.78 billion invested in this asset class across different portfolios as at 30 June 2021.
The fund is already available to retail investors across several large UK platforms, and full platform coverage is expected imminently.
- Figure as at the end of December 2021
- The ACT range (internal classification): these assets invest with a purpose to support the transition to a more sustainable economy. Funds have been assigned thematics aligned to ESG and/or UN’s Sustainable Development Goals (SDGs) objectives. Active stewardship is a key focus for this range, with voting and engagement reporting available at fund level. This range encompasses sustainable and listed impact funds
Johann is a Senior Portfolio Manager within the Fixed Income platform. He is responsible for the Euro Aggregate and Impact strategies. Johann joined AXA IM in January 2009 as a Junior Portfolio Manager where he was initially involved across our Multicurrency, Inflation and Aggregate expertise. Since January 2010, he has focused more exclusively on Euro Aggregate portfolios, managing the expertise’s flagship fund AXA WF Euro Bonds. Since 2018, he has in addition taken responsibility for several strategies with a strong focus on Responsible Investment and Impact investment. Prior to joining AXA IM, Johann worked between 2007 and 2008 at Crédit Agricole CIB (formerly known as Calyon) as an assistant trader on the Interest Rates and Derivatives Arbitrage Proprietary desk. Johann holds a master’s degree in Financial Markets from Neoma Business School.
About EQ Investors
EQ Investors (EQ) is an award-winning discretionary fund manager focused on sustainable and impact investing. We build partnerships with intermediaries in the UK and across the globe, offering active, passive, and bespoke investment solutions.
EQ is a Certified B Corporation, an internationally recognised standard for companies that believe in business as a force for good. Making a positive contribution to the wider community is a core part of our business philosophy. EQ has established The EQ Foundation as a registered charity with a focus on social mobility.
For more information about EQ Investors, visit EQ Investors or follow us on Facebook, Instagram, LinkedIn and Twitter.
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