AXA Investment Managers (AXA IM), part of the BNP Paribas Group, has launched a UK-domiciled global core credit fund with a decarbonisation objective, supported by seed capital from Willis Towers Watson’s (WTW) LifeSight DC master trust.
LifeSight’s initial investment of £400 million (around $510 million) is expected to increase to approximately £1 billion (around $1.27 billion) by 2027, according to AXA IM.
The AXA Carbon Transition Global Core Credit Fund is designed to provide pension investors with access to global credit markets while pursuing a formal net zero objective. The fund targets issuers that have committed to achieving net zero carbon emissions by 2050 or are reducing their carbon intensity in line with that goal.
The fund has adopted the UK’s ‘Sustainability Improvers’ label under the Sustainability Disclosure Requirements (SDR) regime, making it the fifth such fund in AXA IM’s range under this classification.
LifeSight said the investment will be used within its default strategy for members in later stages of accumulation and decumulation, where managing risk and diversification are key considerations.
Commenting on the launch, Andrew Doyle, Lead Investment Adviser to LifeSight, said: “We are proud to have consistently been one of the top performing master trusts in recent years, and are constantly looking for ways to further improve member outcomes. We are therefore delighted to have partnered with AXA IM to access global credit markets. This will be used for our members in the default during later stage accumulation and decumulation. It will help manage risk for these individuals during these important stages by providing valuable geographic diversification and through incorporating climate risk.”
Herschel Pant, Head of Global Consultants and UK Institutional at AXA Investment Managers, said large defined contribution clients continued to allocate capital to AXA IM strategies in 2025. “Our range of building blocks for DC clients in late stage of accumulation and decumulation continues to grow with clients invested across buy and maintain, short duration credit and equity protection strategies,” he said.
Lionel Pernias, Head of Fixed Income Investment Solutions at AXA Investment Managers, said the fund builds on the firm’s existing credit platform. “With over £250 billion (around $320 billion) in buy and maintain credit assets, our growth is a result of our constant innovation,” he said, adding that the new fund reflects demand for credit strategies aligned with the transition to net zero.
The launch comes amid growing interest from UK pension schemes in credit strategies that combine income generation with climate-related objectives.
