AXA Investment Managers (AXA IM) has launched a new passive product, the AXA IM Emerging Markets Credit PAB UCITS ETF, with credit exposure to the main emerging markets adding to its existing PAB (Paris Aligned Benchmark) range of ETFs.
This new indexed ETF aims to replicate the performance of the ICE Emerging Markets Corporate Plus Paris Aligned Absolute Emissions Index (EMCBPABA), net of management fees, both upwards and downwards. This index offers exposure to the Investment Grade and High Yield bonds universes, denominated in USD and EUR, and issued by non-sovereign emerging markets issuers in the main domestic and Eurobond markets.
The firm writes that with this ETF, investors will get access, in one single transaction, to the corporate debt of emerging markets while investing in companies that seek to meet carbon emission reduction targets as defined by the Paris Agreement.
“Strenghtening our fixed income ETF offering with a focus on ESG is a priority to meet our investors’ needs. With the AXA IM Emerging Markets Credit PAB UCITS ETF we offer a new building block which gives investors access to corporate debt from emerging markets in a simple and efficient way, including a decarbonisation objective. This exposure looks particularly relevant in the context of a year full of elections in this part of the globe”, says Olivier Paquier, Global Head of ETF Sales at AXA IM.
This ETF is managed in a physical manner and is classified as “Article 8” under the Sustainable Finance Disclosure Regulation (SFDR). The Total Expense Ratio (TER) will reach 0.34 per cent.
AXA IM Emerging Markets Credit PAB UCITS ETF (tickers : AICU and AQDU) is available in USD and EUR on Deutsche Boerse – XETRA and will be listed on Borsa Italiana and SIX Swiss Exchange soon.
At launch, the ETF will be available for the institutional and retail investors in Austria, Germany, Denmark, Finland, France, Italy (limited to institutional investors until its listing in Italy), Liechtenstein, Luxembourg, Netherlands, Norway, Spain and Sweden.
