AXA Investment Managers has introduced its second ETF in Europe with the launch of an actively managed global equities fund targeting companies making a positive contribution to reducing climate change.
The AXA IM ACT Climate Equity UCITS ETF has been listed on Deutsche Börse Xetra in US dollars (ACLU GY) and euros (ACLT GY).
The fund invests in securities listed worldwide from across the market capitalization spectrum. Up to a quarter of the portfolio may be allocated to emerging markets including up to 10% in Chinese A-shares that are available through the Stock Connect.
The ETF aims to deliver an impact strategy that directly promotes the United Nation’s Sustainable Development Goals related to Climate Action and Affordable & Clean Energy.
AXA IM uses a combination of qualitative and quantitative analysis to seek out companies with attractive investment fundamentals that are providing solutions for climate issues. Eligible firms include those that are producing renewable energy, removing CO2 from the atmosphere, improving the electric grid, investing in less carbon-intensive forms of agriculture and construction, and developing technologies to reduce waste.
Companies that do not directly support the targeted Sustainable Development Goals but have high-quality operations that minimize negative climate externalities will also be considered for inclusion.
The ETF comes with an expense ratio of 0.70% and has been classified as an Article 9 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
As of 18 October, the fund housed $140 million in assets under management.
AXA IM made its ETF debut in early September with the launch of the AXA IM ACT Biodiversity Equity UCITS ETF (ABIT GY). The fund, which also has an expense ratio of 0.70%, invests in a globally diversified portfolio of companies supporting biodiversity efforts. As such, AXA IM notes that the fund directly supports UN Sustainable Development Goals on Clean Water & Sanitation, Responsible Consumption, Life Below Water, and Life on Land.