AXA IM expands PAB ETF range with emerging market debt ETF

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 Benchmark¹) 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. 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 Agreement².

“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”, commented 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%³.

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.

The market price of the UCITS ETF might not be identical to its net asset value at any time. The UCITS ETF aims to replicate the performance of the index and its market price can be different from its net asset value and from the net asset value of the index.

Capital at risk. The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested.

​_{1 Aligned with the objectives of the Paris Agreement}

_{2 For more information, you can consult Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014.}

_{3 ISIN codes of the share classes: ISIN IE00018U4PN8 (max TER: 0.34%), ISIN IE00066L6LB9 (max TER: 0.34%). Investment will be reduced by the costs mentioned.}

You can find the full press release in attachment.