AXA Investment Managers (AXA IM) has launched the AXA ACT Green Short Duration Bond fund, that aims to invest in short-dated green bonds.
Short-dated green bonds can offer the same returns as a comparable conventional bond while enabling projects with environmental benefits.
The launch of the AXA ACT Green Short Duration Bond fund aligns with the AXA IM’s short duration investment philosophy.
This product is aimed at investors looking to capture potential income in short-dated securities while minimising default risk.
In line with AXA IM’s dedicated green bond offering, this fund also aims to finance the transition to a low carbon economy by focusing exclusively on green bonds that have been validated by AXA IM’s proprietary green bond framework.
Using AXA IM’s proprietary green bond framework, the fund’s environmental impact will be centred on four main pillars 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 also primarily support the following United Nations Sustainable Development Goals: climate action, sustainable cities and communities, industry innovation and infrastructure.
The fund is already available to retail investors across several large UK platforms, and full platform coverage is expected imminently.
Johann Plé, manager of the AXA ACT Green Short Duration Bond fund said: “As the demand for green bonds continues to grow, with the market now worth over $1 trillion, we believe that there is an opportunity to help responsible investors meet their differing needs through a variety of green bond products. Our short duration product meets the immediate need for a diversified, low volatility fund with limited interest-rate risk that has all the benefits of green bond exposure. This will help investors to potentially reduce their exposure to climate risks and invest in companies that are working towards a greener society for all.”
Damien Lardoux, head of Impact Investing at EQ Investors, added: “It’s great to work with AXA IM and support the launch of their new Green Short Duration Bond fund. The climate crisis affects us all, and this new fund deepens the green bond market and makes it easier for investors to finance projects that will fundamentally change our economy and environment.”
