Axa Investment Managers (AXA IM) has launched the AXA WF ACT Dynamic Green Bonds fund, which aims to help finance the transition to a low carbon economy.
The actively-managed fund will follow Axa IM’s proprietary green bond framework to invest in green bonds from issuers with a “credible” sustainable strategy and which run projects that provide a “material benefit” to the environment.
Using the framework, the fund’s environmental impact will be centred on four main pillars identified by Axa IM, including green buildings, sustainable ecosystems, low carbon transport and smart energy solutions.
The new fund will be managed by Johann Plé.
He 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.”
The AXA WF ACT Dynamic Green Bonds fund will support the three of the United Nations Sustainable Development Goals (UN SDGs), climate action (SDG 13), sustainable cities and communities (SDG 11), and industry innovation and infrastructure (SDG 9).
It has also received the French ‘Greenfin’ and the Belgian ‘Towards Sustainability’ labels, while 5% of the management fees paid to the fund to be donated by Axa IM to several charities.
“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 Plé.
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 UK.
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