| Change Details | |
|---|---|
| Title | AXA Investment Managers UK Limited |
| Type | Name Changes |
| Companies Impacted | Quilter Life & Pensions Limited Quilter Investment Platform Limited |
| Effective Date | 07 April 2025 |
| 1. Fund details | |
| Companies impacted | Quilter Life & Pensions Limited Quilter Investment Platform Limited |
| Fund Group | AXA Investment Managers UK Limited |
| Fund Names | AXA ACT Carbon Transition Sterling Buy and Maintain Credit AXA ACT Carbon Transition Global Short Duration Bond |
| Type of change | Name, Objective & PolicyChange |
| Date change effective from | 07/04/2025 |
| Is the event subject to shareholder approval? | No |
| 2. Name change details | |
| Current Fund Name | New Fund Name |
| AXA ACT Carbon Transition Sterling Buy and Maintain Credit | AXA Carbon Transition Sterling Buy and Maintain Credit |
| AXA ACT Carbon Transition Global Short Duration Bond | AXA Carbon Transition Global Short Duration Bond |
| 3. Investment objectives & policy | |
| AXA ACT Carbon Transition Sterling Buy and Maintain Credit | |
| Previous | To: (i) generate an income and capital return(net of fees) over the long term (being a period of five years or more) in line with the sterling-denominated investment grade corporate bond market, as represented by the ICE BofA Sterling Non-Gilt Index (the Index); and (ii) keep its weighted average carbon intensity (WACI) lower than the ACD’s carbon emissions benchmark (the Emissions Benchmark), while maintaining a low turnover of bonds held by the fund. The Emissions Benchmark is calculated initially as a 30% reduction of the WACI of the Index as at 31st December 2021. Thereafter, the Emissions Benchmark will be calculated as a further 7% reduction of the WACI of the Emissions Benchmark per year, based on the WACI of the Emissions Benchmark from the previous year. The fund seeks to achieve its investment objective by investing at least 70% of its Net Asset Value in sterling-denominated investment grade corporate bonds (meaning bonds with a credit rating of at least BBB- by Standard & Poor or equivalent rating by Moody’s or Fitch or, if unrated, an equivalent rating as deemed by the ACD). The ACD may also invest in non-sterling-denominated investment grade corporate bonds, hedged back into sterling. Investment will be made globally, largely in more developed markets, but may also be made in emerging markets. The fund is managed in a way that seeks to limit turnover and therefore avoids unnecessary trading costs. The ACD also focuses on avoiding downgrades and defaults through its analysis and selection of issuers and bonds and, by diversifying the fund’s portfolio across different corporate sectors, it aims to mitigate the risks associated with any particular sector. |
| New | To: (i) generate an income and capital return (net of fees) over the long term (being a period of five years or more) in line with the sterling-denominated investment grade corporate bond market, as represented by the ICE BofA Sterling Non-Gilt Index (the Index); and (ii) contribute to the global transition to net zero by investing in issuers which demonstrate a clear and credible commitment to achieving net zero carbon emissions by 2050 or are decreasing their carbon emissions intensity to achieve net zero emissions by 2050. The ACD will seek to keep the weighted average carbon intensity (WACI) of the fund lower than its Emissions Benchmark. The fund’s Emissions Benchmark has been calculated by the ACD to ensure that the fund’s investments are on a trajectory to reach net zero carbon emissions by 2050. The initial value of the Emissions Benchmark is calculated as a 30% reduction of the WACI of the ICE BofA Sterling Non-Gilt index (the “Index”) as of 31st December 2021. Thereafter, the Emissions benchmark will be reduced by 7% year on year. The fund invests: (i) at least 70% of its Net Asset Value in sterling-denominated investment grade corporate bonds (meaning bonds with a credit rating of at least BBB- by Standard & Poor or equivalent rating by Moody’s or Fitch or, if unrated, an equivalent rating as deemed by the ACD). The ACD may also invest in non-sterling-denominated investment grade corporate bonds, hedged back into sterling. Investment will be made globally, largely in more developed markets, but may also be made in emerging markets; and (ii) at least 70% of its Gross Asset Value in issuers which are categorised by the ACD as either Committed to Align, Aligning or Aligned to a net zero carbon economy (each term is defined below). The ACD expects that the proportion of assets in the fund invested in issuers categorised as “Aligned” will increase over time in line with the investment objective. The fund will invest its remaining assets as permitted under this investment policy. |
| AXA ACT Carbon Transition Global Short Duration Bond | |
| Previous | To: (i) generate an income return combined with any capital growth (net of fees) over a period of three years or less; and (ii) keep its weighted average carbon intensity (WACI) lower than the ACD’s carbon emissions benchmark (the Emissions Benchmark). The Emissions Benchmark is calculated initially as a 30% reduction of the WACI of the ICE BofA 1-5 Year Global Corporate Index (GVBC) as at 31st December 2021. Thereafter, the Emissions Benchmark will be calculated as a further 7% reduction of the WACI of the Emissions Benchmark per year, based on the WACI of the Emissions Benchmark from the previous year. The fund invests at least 80% of its Net Asset Value in bonds (including index-linked bonds) with at least 70% of this investment being in bonds with shorter expected maturities (five years or less) and money market instruments, issued by governments and companies diversified globally (including emerging markets), with the aim of reducing the effect of fluctuations in interest rates and market volatility while generating an income return. The fund may invest up to 25% of its Net Asset Value in ‘sub-investment grade’ bonds (meaning bonds with a rating of BB+ and below by Standard & Poor or equivalent rating by Moody’s or Fitch). The ACD seeks to reduce the effect of credit risk through diversification and its analysis and selection of bonds and money market instruments. |
| New | To: (i) generate an income return combined with any capital growth (net of fees) over a period of three years or less; and (ii) contribute to the global transition to net zero by investing in issuers which demonstrate a clear and credible commitment to achieving net zero carbon emissions by 2050 or are decreasing their carbon emissions intensity to achieve net zero emissions by 2050. The ACD will seek to keep the weighted average carbon intensity (WACI) of the fund lower than its Emissions Benchmark. The fund’s Emissions Benchmark has been calculated by the ACD to ensure that the fund’s investments are on a trajectory to reach net zero carbon emissions by 2050. The initial value of the Emissions Benchmark is calculated as a 30% reduction of the WACI of the ICE BofA 1-5 Year Global Corporate Index (GVBC) (the “Index”) as of 31st December 2021. Thereafter, the Emissions benchmark will be reduced by 7% year on year 5. The fund invests: (i) at least 80% of its Net Asset Value in bonds(including index-linked bonds) with at least 70% of this investment being in bonds with shorter expected maturities (five years or less) and money market instruments, issued by governments and companies diversified globally (including emerging markets), with the aim of reducing the effect of fluctuations in interest rates and market volatility while generating an income return; and (ii) at least 70% of its Gross Asset Value in issuers which are categorised by the ACD as either Committed to Align, Aligning or Aligned to a net zero carbon economy (each term is defined below). The ACD expects that the proportion of assets in the fund invested in issuers categorised as “Aligned” will increase over time in line with the investment objective. The fund will invest its remaining assets as permitted under this investment policy. |