AXA IM launches a global core credit fund focusing on carbon transition, seeded by LifeSight
AXA Investment Managers (AXA IM), part of BNP Paribas Group, has launched a UK-domiciled global core credit fund focusing on the path to net zero, with Willis Towers Watson’s (WTW) LifeSight DC master trust providing seed capital, which could invest up to £1 billion1 by 2027.
The AXA Carbon Transition Global Core Credit Fund is designed to provide pension clients access to global credit markets alongside investing sustainably with a formal decarbonisation objective in place. This fund has adopted the ‘Sustainability Improvers’ Label, the fifth in AXA IM’s range of SDR (Sustainability Disclosure Requirements) ‘Improver’ Funds, highlighting the firm’s ongoing commitment to the UK’s regulated sustainability investment market.
The fund aims to deliver income and capital returns over the long term, offering a robust core building block for pension investors seeking broad, diversified credit exposure with a more selective and forward looking approach. The fund also aims to contribute to the global transition to net zero by investing in issuers which demonstrate a clear and credible commitment to achieving net zero carbon emissions by 2050 or are decreasing their carbon emissions intensity to achieve net zero emissions by 2050.
LifeSight’s seed capital investment starts at £400 million, and is expected to rise to c.£1 billion by 2027.
Commenting on the launch, Andrew Doyle, Lead Investment Adviser to LifeSight, said:
“We are proud to have consistently been one of the top performing master trusts in recent years, and are constantly looking for ways to further improve member outcomes. We are therefore delighted to have partnered with AXA IM to access global credit markets. This will be used for our members in the default during later stage accumulation and decumulation. It will help manage risk for these individuals during these important stages by providing valuable geographic diversification and through incorporating climate risk. We believe this will continue to improve on the strong outcomes we have achieved to date for our members.”
Herschel Pant, Head of Global Consultants and UK Institutional at AXA Investment Managers, said:
“We are delighted that large DC clients continue to trust us with their members’ capital and invest in strategies with us over 2025. Our range of building blocks for DC clients in late stage of accumulation and decumulation continues to grow with clients invested across buy & maintain, short duration credit and equity protection strategies. All of these have been created with DC investors and we look forward to working closely with our DC clients as their needs evolve over time.”
Lionel Pernias, Head of Fixed Income Investment Solutions at AXA Investment Managers, added:
“As a global leader in responsible investing, AXA IM is committed to accelerating the transition to a net zero world.With over £250bn in buy and maintain credit assets, our growth is a result of our constant innovation. As such, working with LifeSight to launch a carbon transition credit product showcases AXA IM’s continued innovation in the DC pension and sustainability space.”
Capital at risk. The value of investments, and any income from them, may fall as well as rise and investors may get back less than they originally invested.
For more information, please refer to the Consumer Facing Disclosure document which outlines the Funds sustainability approach here: https://funds.axa-im.co.uk/en/individual/fund/axa-carbon-transition-global-core-credit-fund-z-accumulation-gbp/
- The figure included is an estimate and not a guarantee. Actual fund size may vary due to market conditions, investment performance, and other factors. Past performance and projections are not indicative of future results.
Disclaimer
Notes to editors
Additional Risks
Counterparty Risk: failure by any counterparty to a transaction (e.g. derivatives) with the Fund to meet its obligations may adversely affect the value of the Fund. The Fund may receive assets from the counterparty to protect against any such adverse effect but there is a risk that the value of such assets at the time of the failure would be insufficient to cover the loss to the Fund.
Derivatives: derivatives can be more volatile than the underlying asset and may result in greater fluctuations to the Fund's value. In the case of derivatives not traded on an exchange they may be subject to additional counterparty and liquidity risk.
Liquidity Risk: some investments may trade infrequently and in small volumes. As a result, the Fund manager may not be able to sell at a preferred time or volume or at a price close to the last quoted valuation. The fund manager may be forced to sell a number of such investments as a result of a large redemption of shares in the Fund. Depending on market conditions, this could lead to a significant drop in the Fund's value and in extreme circumstances lead the Fund to be unable to meet its redemptions.
Credit Risk: the risk that an issuer of bonds will default on its obligations to pay income or repay capital, resulting in a decrease in Fund value. The value of a bond (and, subsequently, the Fund) is also affected by changes in market perceptions of the risk of future default. Investment grade issuers are regarded as less likely to default than issuers of high yield bonds.
Interest Rate Risk: fluctuations in interest rates will change the value of bonds, impacting the value of the Fund. Generally, when interest rates rise, the value of the bonds fall and vice versa. The valuation of bonds will also change according to market perceptions of future movements in interest rates.
Further explanation of the risks associated with an investment in this Fund can be found in the prospectus
About AXA Investment Managers
AXA Investment Managers (AXA IM) is part of the BNP Paribas Group since 1st July 2025 following the closing of its acquisition.
AXA IM is a key player in the global asset management industry with over 3,000 professionals and 24 offices in 19 countries globally.
We serve a broad range of international clients, including institutional, corporate, and retail investors, through a diverse array of global investment opportunities. Our offerings encompass both alternative assets—spanning real estate equity, private debt, alternative credit, infrastructure, private equity, and private market solutions—and traditional asset classes, including fixed income, equities, and multi-asset strategies.
AXA IM manages approximately €853 billion in assets*, of which €493 billion are categorized as ESG-integrated, sustainable, or impact investments. Our focus is on empowering clients with a comprehensive suite of products, from traditional investments to ESG-driven strategies, enabling them to align their portfolios with both financial objectives and sustainability priorities.
In a fast-changing world, we adopt a pragmatic approach aimed at providing long-term value to our clients, our employees, and the broader economy.
*As at end of June 2025
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About LifeSight
https://www.lifesight.com/en-gb/
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Risk Warning
The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested.