AXA Investment Managers has launched a new green bond fund, focused on short-dated green bonds designed to minimise risk and reduce volatility.
The AXA ACT Green Short Duration Bond fund aims to finance the transition to a low carbon economy by focusing on green bonds that have been validated by AXA IM’s proprietary green bond framework.
The new fund’s environmental impact will be focused on four main pillars which aim to reduce energy consumption, produce clean energy and preserve the ecosystem, according to the investment manager. These include green buildings, sustainable ecosystem, low carbon transport and smart energy solutions.
The fund will be managed by Johann Ple. He 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.”
EQ Investors, the sustainable investor for charities and high net worth individuals, has committed to investing capital in the fund.
Damien Lardoux, head of impact investing at EQ Investors, commented: “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.”
