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AXA IM launches Dynamic Green Bonds fund strengthening its green bond and impact offering

Photo by Visual Stories, Micheile on Unsplash.
  • AXA Investment Managers (AXA IM), currently managing €15.8bn of green bonds, launches the AXA WF ACT Dynamic Green Bonds fund that aims to generate revenue and growth over the long term as well as financing the transition to a low carbon economy.
  • The new fund is managed by Johann Plé, and follows AXA IM’s proprietary Green Bond framework which entails investing in green bonds from issuers with a credible sustainable strategy and whose projects provide a material benefit to the environment. 

AXA Investment Managers (AXA IM) today announces the launch of the AXA WF ACT Dynamic Green Bonds fund that aims to generate revenue and growth over the long term, as well as financing the transition to a low carbon economy by focusing on green bonds aligned with AXA IM’s framework.

The global strategy will be actively managed with a structural focus on higher yielding segments such as high yield credit and emerging market debt so it may only suit investors who are comfortable with taking on additional risk. It will adopt a concentrated approach aimed at yield enhancement and a flexible duration management to better navigate market cycles.

Commenting on the launch, Johann Plé, manager of the AXA WF ACT Global Green Bonds fund said: “In recent years, the fight against climate change has driven strong growth momentum in the global green bond market. As it continues to expand, we expect a significant rise in the proportion of high yield and emerging market issuers in this universe. This trend offers the potential to address investors’ hunt for yield while delivering measurable environmental impact.” 

Using AXA IM’s proprietary Green bond framework, the fund’s environmental impact will be centred on four main pillars – as listed below – 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  support the following United Nations Sustainable Development Goals (“UN SDGs”): climate action (SGD 13), sustainable cities and communities (SDG 11), industry innovation and infrastructure (SDG 9).

“AXA IM has played a pioneering role in green bond investing since launching one of the first dedicated strategies in 2015 and the launch of the fund demonstrates our ongoing commitment to delivering sustainable solutions to our clients, alongside our extensive experience investing in green bonds and solid green bond framework”, added Johann Plé.

The AXA WF ACT Dynamic Green Bonds fund  is part of AXA IM’s ACT fund range, having been categorised an Article 9 product according to the EU Sustainable Finance Disclosure Regulation (SFDR).

Five percent of the management fees paid to the fund will be donated by AXA IM to several charities.

The Fund has received the French Greenfin and the Belgian Towards Sustainability labels.

The fund is or will be registered and available to professional and retail investors in Austria, Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden and the United Kingdom.

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