AXA IM launches Dynamic Green Bonds fund strengthening its green bond and impact offering
- 01 February 2022
- AXA Investment Managers (AXA IM), currently managing €15.8bn of green bonds1 , 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.
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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 framework2 .
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 (SDG 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 range3 , having been categorised an Article 94 [4] 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 Greenfin5 and the Belgian Towards Sustainability6 [6] 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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Biography - Johann Plé
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 AXA IM’s approach to impact investing
AXA IM manages a variety of impact strategies, ranging from private equity investments to green and social bonds and listed equities and bonds, which look to provide solutions relating to issues such as healthcare, climate change and biodiversity.
AXA IM’s impact range is its most focused responsible investment offering, with products specifically designed to have a direct, measurable and positive impact on society and/or the environment. These strategies will report definitive and measurable data against impact KPIs such as carbon footprint or lives improved, and each will target one or more UN SDGs. These strategies have a parallel commitment to deliver returns by tapping into the key themes of the sustainability economy.
As of September 2021, AXA IM managed about €3 billion of assets in this category.
More information about AXA IM’s approach to impact investing here.
The value of investments may fall as well as rise and you may not get back the full amount invested.
Risks
Credit Risk: Risk that issuers of debt securities held in the Fund may default on their obligations or have their credit rating downgraded, resulting in a decrease in the Net Asset Value.
Liquidity Risk: risk of low liquidity level in certain market conditions that might lead the Sub-Fund to face difficulties valuing, purchasing or selling all/part of its assets and resulting in potential impact on its net asset value.
Counterparty Risk: Risk of bankruptcy, insolvency, or payment or delivery failure of any of the Sub-Fund's counterparties, leading to a payment or delivery default.
Currency Risk: the Fund holds investments denominated in currencies other than the base currency of the Fund. As a result, exchange rate movements may cause the value of investments (and any income received from them) to fall or rise affecting the Fund's value.
Biography - Johann Plé
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 AXA IM’s approach to impact investing
AXA IM manages a variety of impact strategies, ranging from private equity investments to green and social bonds and listed equities and bonds, which look to provide solutions relating to issues such as healthcare, climate change and biodiversity.
AXA IM’s impact range is its most focused responsible investment offering, with products specifically designed to have a direct, measurable and positive impact on society and/or the environment. These strategies will report definitive and measurable data against impact KPIs such as carbon footprint or lives improved, and each will target one or more UN SDGs. These strategies have a parallel commitment to deliver returns by tapping into the key themes of the sustainability economy.
As of September 2021, AXA IM managed about €3 billion of assets in this category.
More information about AXA IM’s approach to impact investing here.
Disclaimer
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[AXA WF ACT Global Dynamic Green Bonds is a/are sub-fund(s) of AXA World Funds. AXA WORLD FUNDS ‘s registered office is 49, avenue J.F Kennedy L-1885 Luxembourg. The Company is registered under the number B. 63.116 at the “Registre de Commerce et des Sociétés” The Company is a Luxembourg SICAV UCITS IV approved by the CSSF and managed by AXA Funds Management, a société anonyme organized under the laws of Luxembourg with the Luxembourg Register Number B 32 223RC, and whose registered office is located at 49, Avenue J.F. Kennedy L-1885 Luxembourg.
SFDR product categorization: The product categorization is provided based on the basis of the European Directive (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR Regulation”). The attention of each recipient is drawn to the fact that, as of today the SFDR related regulatory technical standards (“RTS”) have not been finalized and remain subject to the approval and formal adoption by the European Commission and the European Parliament and Council. Furthermore there may be further guidance in relation to the interpretation of the SFDR Regulation. We are monitoring regulatory developments closely, and the product categorization shall be re-assessed and may evolve when the RTS and/or further guidance is published.
Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 22 Bishopsgate London EC2N 4BQ
In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.
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.