AXA launches fund for carbon transition

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AXA Investment Managers, the asset management team of the French insurer, has launched a UK-domiciled global short-duration bond fund focussing on the path to net zero, with investment consulting firm Aon providing £127m in seed capital.

The AXA ACT Carbon Transition Global Short Duration Bond Fund is an actively managed short-duration fund, with a dual objective of meeting financial returns and decarbonisation.

It will primarily invest in investment-grade bonds, with the ability to invest in high-yield and emerging market debt ‘opportunistically’.

Nicolas Trindade will be the lead portfolio manager of the open-ended fund. He said: “With global yield curves still inverted, we believe this is a great opportunity to launch a fund able to select the most compelling net-zero opportunities in an asset class offering both high yields and the potential for an attractive total return.”

Aon cited AXA IM’s extensive short-duration capability, responsible investment credentials and client focus as reasons behind seeding the fund. 

Philippa Allen, portfolio manager at Aon, said: “We believe AXA IM is a skilled short-dated credit manager and are pleased to have worked with them and seeded this carbon transition fund. The allocation to this strategy within several of our solutions continues Aon’s commitment to aligning its UK fiduciary portfolios to net zero.”

At the end of December 2022, AXA IM managed €489bn (£417bn) of ESG-integrated, sustainable and impact assets. The company is committed to reaching net zero greenhouse gas emissions by 2050 across all its assets. 

How else can insurers achieve net zero faster with their investments?

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