AXA Investment Managers 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 billion 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.
According to AXA, 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 IM, 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 IM, 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.”
