AXA Investment Managers (AXA IM) has designated its AXA Carbon Transition Global Short Duration and AXA Carbon Transition Sterling Buy and Maintain Credit funds as ‘Sustainability Improvers’ under the UK Financial Conduct Authority’s (FCA) new Sustainability Disclosure Requirements (SDR) framework.
The reclassification makes the two strategies among the first fixed income products to receive an SDR label, as AXA IM seeks to strengthen its position in sustainable fixed income investing. Both funds aim to deliver financial returns while supporting the broader transition to a net zero carbon economy by 2050.
Together, AXA IM’s SDR-labelled fund range comprises approximately £1.2 billion in assets across fixed income and equities, representing just under 15% of its UK-domiciled offerings. This includes four funds labelled as ‘Sustainability Improvers’—two in fixed income and two in equities—and one equity fund classified under the ‘Sustainability Impact’ category, which focuses on people and planet themes.
The carbon transition framework applied in the SDR-labelled funds is also utilised across AXA IM’s segregated fixed income portfolios managed for UK institutional clients.
Jane Wadia, Head of Sustainability for Core Products & Clients at AXA IM, said: “Bond investors are in a unique position to capitalise on the investment opportunities driven by the transition to a lower carbon economy, and this has been proven by the success of our fixed income carbon transition strategies and the demand we are seeing from UK-based clients.”
“Our focus continues to be on empowering clients with a comprehensive suite of products—from traditional investments that consider ESG factors to sustainability-led strategies—enabling them to align portfolios with both financial goals and sustainability priorities.”
The adoption of the SDR labels reflects AXA IM’s ongoing efforts to enhance transparency and align with regulatory standards aimed at curbing greenwashing and promoting credible sustainability claims in investment products.
