AXA Investment Manager's Green Bond Fund Granted Financial Conduct Authority's Sustainability Impact Award
In a significant move towards sustainable investing, AXA Investment Managers (AXA IM) has introduced a new fund, the AXA ACT Green Short Duration Bond Class Z, under the UK's Sustainability Disclosure Requirements (SDR) label. This fund is a collaborative effort between AXA IM and Aon.
The AXA IM Sustainability Impact-labeled Green Short Duration Bond Fund aims to provide income and capital growth over a medium term (around three years) by investing in bonds that finance environmentally beneficial projects. This fund aligns with AXA Investment Managers’ commitment to sustainable investing and adopts the Impact label under the UK's Sustainability Disclosure Requirements (SDR), enhancing transparency and trust regarding its genuine sustainability characteristics.
Key details about the fund include an investment focus on bonds that support sustainability, likely green infrastructure or low-carbon initiatives. The fund targets growth within about three years, has no initial charge, no performance fee, and a relatively low ongoing charge of 0.44%. The fund is available as accumulation units (reinvesting income) and income units (paying out income).
Benefits of this fund include exposure to green bonds that help finance sustainable projects contributing to a low-carbon economy and social needs, such as renewable energy, affordable housing, and healthcare. The fund complies with the FCA’s 2024 Sustainability Disclosure Requirements, ensuring the fund delivers genuine sustainability impact, avoids greenwashing, and enhances comparability with other sustainable funds.
The fund is designed for investors seeking income and capital growth while supporting environmental and social projects through their investments. It also offers lower volatility and focuses on impact-oriented fixed income investments in the green bond market segment.
With the addition of this fund, AXA IM now holds six SDR-labelled funds in the UK. This move by AXA IM underscores its commitment to shaping a more sustainable financial ecosystem. Four of these six SDR-labelled funds are under the 'Sustainability Improver' category.
Damien Lardoux, Head of Impact Investing at EQ Investors, has commented on the Fund's adoption of the FCA’s 'Sustainability Impact' label. He has welcomed the fund for its integrity and ambition in its investment approach.
In conclusion, this AXA IM fund offers a responsible investment option focused on green bonds with a clear medium-term growth objective and strong sustainability credentials as validated by recent regulatory labeling. For investors seeking to support environmental and social projects while pursuing income and capital growth, the AXA ACT Green Short Duration Bond Class Z presents an attractive choice. We encourage our readers to follow us on LinkedIn for more updates on sustainable investing.
- By adopting the Impact label under the UK's Sustainability Disclosure Requirements (SDR), the AXA ACT Green Short Duration Bond Class Z aligns with AXA Investment Managers’ commitment to sustainable investing, fostering transparency and trust about its genuinely sustainable characteristics.
- This AXA IM fund, designed for investors seeking income and capital growth while supporting environmental and social projects through their investments, offers a focus on impact-oriented fixed income investments within the green bond market segment.
- Damien Lardoux, Head of Impact Investing at EQ Investors, has commended the AXA ACT Green Short Duration Bond Class Z for its integrity and ambition in its investment approach, specifically its commitment to shaping a more sustainable financial ecosystem.
