| ISIN | LU1280195881 |
| Launch date |
10/08/2015 |
| Available in |
AT, BE, CH, DE, DK, ES, FI, FR, GB, IT, LU, NL, NO, SE |
| Fund type |
Fixed Income Fund |
| Kind of fund |
Sustainable issues Fund / Climate-/ Environmental Technology fund |
| Aim of investment |
The Fund aims over a medium term a combination of current income and capital appreciation by investing primarily in bonds by countries or companies (Investment Grade). |
| Investment strategy |
The fund is invested mainly in green bonds, which can offer the same returns as a comparable conventional bond plus the added benefit of enabling projects with environmental benefits in a transparent manner. Given a relatively nascent green bond market, diversification is achieved by investing in issuers who facilitate the transition to the low carbon economy while displaying robust fundamentals. Issuers are mostly investment grade, but can also be high yield credits, enabling diversification across risk profiles, sectors and currencies. |
| Investment process |
The Global Fixed Income process is disciplined, repeatable and consistent, and comprises the five steps described below and will integrate the eligible investment universe when building the portfolio.
AXA IM’s fixed income philosophy is reflected in our investment process, which has been constructed in order to exploit the opportunities and sources of alpha derived from our core beliefs while mitigating downside risk. Our process undertakes a regular, rigorous assessment of the macroeconomic, financial market and regulatory environment.
The Planet Bonds Strategy follows the same investment process as any other Fixed Income Strategy.
The Global Fixed Income process is disciplined, repeatable and consistent, and comprises the five steps described below and will integrate the eligible investment universe when building the portfolio.
Forecasting (steps one and two) takes place on a quarterly basis.
Step One: Defining the macroeconomic environment
Step Two: Defining market expectations and active strategy recommendations using MVST analysis
Step Three: Investment strategy and portfolio construction
The RI integration is implemented at two levels:
- First by defining the eligible universe by excluding issuers based on environmental and ESG controversies.
- At the security selection level by identifying the most transparent and impactful Green Bonds as well as issues that positively contribute towards solving climate change.
Part 1: Top-Down RI - ESG Exclusions - “cleaning” the eligible universe: The RI team reviews the portfolio’s eligible universe on a bi-annual basis.
Part 2: Bottom-up RI - Engaging and Investing; Filtering the eligible investment universe
Step Four: Risk monitoring
Step Five: Continuous strategy review |
| Positive criteria |
n.s. |
| Negative criteria for stocks and corporate bonds |
Governance:
- violations of the UN Global Compact
Ethical and Social:
- nuclear weapons
- banned weapons
Environment:
- coal
- palm oil
Other:
- controversial business practices
|
| Negative criteria for government bonds |
n.s. |
| Research done by |
AXA Funds Management SA (Luxembourg) and sustainalytics |
This fund profile is aligned with the fund company.
*no exclusion but part of the analysis