Aon seeds AXA IM carbon transition bond fund
In a strategic move towards bolstering sustainable investment portfolios, Aon seeds AXA Investment Managers (AXA IM) carbon transition bond fund aimed at facilitating the transition to net zero emissions.
The initiative has been jumpstarted with a significant £127 million seed capital infusion from Aon, a prominent professional services and investment consulting firm.
Dubbed the AXA ACT Carbon Transition Global Short Duration Bond Fund, this actively managed fund is designed to harness global diversification and dynamic asset allocation within the short-dated fixed income spectrum.
Drawing upon AXA IM’s extensive expertise, the fund amalgamates the best strategies from their existing suite of 11 short-duration offerings to construct a truly diversified global portfolio.
Employing a combination of bottom-up fundamental analysis and top-down asset allocation strategies, the fund will pursue a dual objective of delivering financial returns while actively contributing to decarbonisation efforts.
It will predominantly focus on investment-grade bonds, with the flexibility to opportunistically invest in high-yield and emerging market debt.
Nicolas Trindade, who oversees approximately £2 billion in global and sterling liquid short-dated fixed income strategies for AXA IM, will spearhead the management of the new open-ended fund.
Philippa Allen, Portfolio Manager at Aon, expressed confidence in AXA IM’s prowess in short-dated credit management and emphasized their satisfaction in seeding the carbon transition fund.
Allen highlighted Aon’s commitment to aligning its UK fiduciary portfolios with net zero objectives.
Vivek Roy, Senior Consultant Relations Manager at AXA IM, underscored the firm’s dedication to responsible investing and its mission to accelerate the transition to a net zero world.
He emphasised the collaborative effort with Aon as a natural extension of AXA IM’s capabilities and solution-oriented approach.
Nicolas Trindade echoed the sentiment, citing the current global yield curve dynamics as an opportune moment to launch a fund focused on selecting compelling net-zero opportunities within an asset class offering high yields and potential for attractive total returns.
Trindade reaffirmed the fund’s commitment to providing investors with downside protection and ensuring investments align with the net zero transition.
The post Aon seeds AXA IM carbon transition bond fund appeared first on ReinsuranceNe.ws.