AXA IM expands PAB ETF range with two new World and Emerging Markets additions

AXA Investment Managers (AXA IM) continues to expand its ETF range in line with the objectives of the Paris Agreement with the launch of two new passive ETFs: AXA IM MSCI World Equity PAB UCITS ETF and AXA IM MSCI Emerging Markets Equity PAB UCITS ETF.

1. AXA IM MSCI World Equity PAB UCITS ETF (ticker AWDU)

This new indexed ETF tracks the performance of the MSCI World Climate Paris Aligned Index®, net of management fees, both upwards and downwards. This index provides access to the performances of large and mid-cap companies listed in 23 industrialised countries across the world, follows the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)¹ and intends to exceed the minimum standards of the EU Paris Aligned Benchmark requirements². This new ETF not only offers investors exposure to global markets, to date, more than 600 companies³ , but it also offers a decarbonisation trajectory compatible with the objectives of the Paris Agreement (Paris Aligned Benchmark).

This ETF is managed in a physical manner and charges an annual Total Expense Ratio (TER) of 0.20%⁴. AWDU is listed on Deutsche Börse – XETRA ​ and soon on Borsa Italiana and SIX Swiss Exchange. It is available to all types of investors in Austria, Germany, Denmark, Finland, France, Italy (only for institutional investors pending its listing in Italy), Luxembourg, Netherlands, Norway, Spain and Sweden.

2. AXA IM MSCI Emerging Markets Equity PAB UCITS ETF (ticker AIQU)

This new indexed ETF tracks the performance of the MSCI Emerging Markets Climate Paris Aligned Index®, net of management fees, both upwards and downwards. This index offers exposure to large and mid-cap equities across the main emerging markets with a growth potential coming from some of the most dynamic countries in the world, according to us. This index is following a decarbonisation trajectory consistent with the objectives of the Paris Agreement, integrates ​ recommendations of the TCFD and intends to exceed the minimum standards of the EU Paris Aligned Benchmark requirements. With this new ETF, investors will gain exposure to close to 380 titles from 24 emerging countries⁵ with one single transaction.

This ETF is managed in a physical manner and charges an annual Total Expense Ratio (TER) of 0.24%⁶. AIQU is registered in Austria, Germany, Denmark, Finland, France, Italy⁷, Ireland, Liechtenstein, Luxembourg, Netherlands, Portugal, Norway, Spain and Sweden. It will be available to all types of investors pending its listing on Deutsche Börse – XETRA, Borsa Italiana and SIX Swiss Exchange in the coming weeks.

Both ETFs are classified as “Article 8” under the Sustainable Finance Disclosure Regulation⁸ (SFDR). AXA IM now offers a range of ten UCITS ETFs, including six PAB ETFs, in equities and bonds, and both in active and passive strategies. AXA IM managed $2.6 billion in ETFs as at end of June 2024.

“We built these two new ETFs to provide investors access to the world's primary geographic regions and enable them to adapt their allocation according to political, economic and budgetary conditions. ​ These two new building blocks will help investors diversify global and emerging equities needs, which both have been particularly popular in the ETF format in recent years, while reducing their exposure to climate risks, in the most transparent way possible and at a competitive cost.” commented Olivier Paquier, Global Head of ETF Sales at AXA IM.

There can be no assurance that the ETFs will achieve their investment objective. It is recommended that an investment in one or more of these ETFs does not constitute a substantial part of an investment portfolio and may not be suitable for all investors.

Index tracking risk: there is no guarantee that the Fund will achieve perfect replication of its market index, and it may be subject to tracking error risk, i.e. the risk that its returns do not exactly follow those of its index at all times.

Capital loss risk: investors may lose some or all of the capital invested, depending on market conditions.

Equity risk: share prices may fluctuate based on investors' expectations or forecasts, which may result in high volatility risk.

Global investment risk: Investments in foreign securities offer potential advantages not available from investments exclusively in securities denominated in the fund's reference currency.

Foreign exchange risk: Any money paid to you will be in another currency, so your ultimate gain will depend on the exchange rate between the two currencies.

Emerging markets risk: The AXA IM MSCI Emerging Markets Equity PAB UCITS ETF invests in emerging markets securities, which may be subject to additional risk factors such as political and economic factors, counterparty and liquidity risks, and legal risks.

The market price of an index ETF may not be identical to its net asset value at all times. The index ETF aims to replicate the performance of the index, and its trading price may differ from its net asset value and that of the index.

The list above of risk factors is not exhaustive. Please refer to the prospectus for full product details and complete information on the risks.

The ESG data used in the investment process is based on ESG methodologies that rely on data supplied by third parties. They are subjective and may evolve over time. Despite several initiatives, the absence of harmonized definitions can make ESG criteria heterogeneous. As a result, the various investment strategies that use ESG criteria and ESG reporting are difficult to compare with one another. Strategies that integrate ESG criteria and those that integrate sustainable development criteria may use ESG data that appear similar, but need to be distinguished because their calculation methods may be different.

For more information on ETFs, including net asset values, visit the local fund center at ETFs | AXA IM Core (axa-im.com).

_{1 See : FINAL-2017-TCFD-Report-11052018.pdf (bbhub.io)}

_{2 The European Commission published, on 3 December 2020, the Delegated Regulation (EUR-Lex - L:2020:406:TOC - EN - EUR-Lex (europa.eu) which contains the minimum standards required for the EU Climate Transition Benchmarks and the EU Paris Agreement Benchmarks. In the event of changes to the delegated regulations and a necessary update to the Methodology Index, MSCI will issue a statement prior to implementing the methodology changes. MSCI will not conduct a formal consultation prior to the implementation of these updates.}

_{3 Figures as at end of June 2024. See: MSCI World Climate Paris Aligned Index.}

_{4 Share classes: ISIN IE000SU7USQ3 (max TER: 0.20%), IE000WZU35H0 (max TER: 0.20%).}

_{5 Figures as at end of June 2024. See : MSCI Emerging Markets Climate Paris Aligned Index.}

_{6 Share class: ISIN IE000GLIXPP3 (max TER: 0.24%).}

_{7 For institutional only in Italy. The ETF will be available for all type of investors after the listing on Borsa Italiana.}

_{8 The classification of the AXA IM MSCI World Equity PAB UCITS ETF and the AXA IM MSCI Emerging Markets Equity PAB UCITS ETF under SFDR may be subject to adjustments and amendments, since SFDR has come into force recently only and certain aspects of SFDR may be subject to new and/or different interpretations than those existing at the date of this prospectus. As part of the ongoing assessment and current process of classifying its financial products under SFDR, the Manager reserves the right, in accordance with and within the limits of applicable regulations and of the AXA IM MSCI World Equity PAB UCITS ETF and the AXA IM MSCI Emerging Markets Equity PAB UCITS ETF’s legal documentations, to amend the classification of the Funds from time to time to reflect changes in market practice, its own interpretations, SFDR-related laws or regulations or currently-applicable delegated regulations, communications from national or European authorities or court decisions clarifying SFDR interpretations. Investors are reminded that they should not base their investment decisions on the information presented under SFDR only.}

^{This press release should not be regarded as an offer, solicitation, invitation or recommendation to subscribe for any investment service or product and is provided for information purposes only. No financial decisions should be made on the basis of information provided.}

^{This press release does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.}

^{Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.}

^{The characteristics of AXA IM MSCI World Equity PAB UCITS ETF and AXA IM MSCI Emerging Markets Equity PAB UCITS ETF do not protect investors from the potential effect of inflation over time. Investments and/or any income received during the period will not be revalued by the rate of inflation over the same period. As a result, the inflation-adjusted rates of return of the AXA IM MSCI World Equity PAB UCITS ETF and the AXA IM MSCI Emerging Markets Equity PAB UCITS ETF could be negative. Consequently, inflation could adversely affect the performance and/or value of your investment.}

^{Before making an investment, investors should read the relevant Prospectus and the Key Investor Information Document / scheme documents, which provide full product details including investment charges and risks. The information contained herein is not a substitute for those documents or for professional external advice.}

^{The product or strategy discussed in this document may not be registered nor available in your jurisdiction. Please check the countries of registration with the asset manager, or on the local web sites https://www.axa-im.com/en/ , where the funds and share classes published are filtered according to country of registration and investors’ profile. In particular units of the funds may not be offered, sold or delivered to U.S. Persons within the meaning of Regulation S of the U.S. Securities Act of 1933. The tax treatment relating to the holding, acquisition or disposal of shares or units in the fund depends on each investor’s tax status or treatment and may be subject to change. Any potential investor is strongly encouraged to seek advice from its own tax advisors.}

^{UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.}

^{The market price of an index ETF may not be identical to its net asset value at all times. The index ETF aims to replicate the performance of the index, and its trading price may differ from its net asset value and that of the index.}

^{For more information on sustainability-related aspects please visit https://www.axa-im.com/what-is-sfdr. The classification of the AXA IM MSCI World Equity PAB UCITS ETF and the AXA IM MSCI Emerging Markets Equity PAB UCITS ETF under SFDR may be subject to adjustments and amendments, since SFDR has come into force recently only and certain aspects of SFDR may be subject to new and/or different interpretations than those existing at the date of this [Prospectus]. As part of the ongoing assessment and current process of classifying its financial products under SFDR, [the Manager] reserves the right, in accordance with and within the limits of applicable regulations and of the AXA IM MSCI World Equity PAB UCITS ETF and the AXA IM MSCI Emerging Markets Equity PAB UCITS ETF’s [legal documentation], to amend the classification of the Funds from time to time to reflect changes in market practice, its own interpretations, SFDR-related laws or regulations or currently-applicable delegated regulations, communications from national or European authorities or court decisions clarifying SFDR interpretations. Investors are reminded that they should not base their investment decisions on the information presented under SFDR only.}

^{For investors located in the European Union: Please note that the management company reserves the right, at any time, to no longer market the product(s) mentioned in this communication in the European Union by filing a notification to its supervision authority, in accordance with European passport rules.}

^{In the event of dissatisfaction with AXA Investment Managers products or services, you have the right to make a complaint, either with the marketer or directly with the management company (more information on AXA IM complaints policy is available in English: https://www.axa-im.com/important-information/comments-and-complaints ). If you reside in one of the European Union countries, you also have the right to take legal or extra-judicial action at any time. The European online dispute resolution platform allows you to submit a complaint form (available at: https://ec.europa.eu/consumers/odr/main/index.cfm?event=main.home.chooseLanguage) and provides you with information on available means of redress (available at: https://ec.europa.eu/consumers/odr/main/?event=main.adr.show2).}

^{Summary of investor rights in English is available on AXA IM website https://www.axa-im.com/important-information/summary-investor-rights. Translations into other languages are available on local AXA IM entities’ websites.}

^{AXA IM MSCI World Equity PAB UCITS ETF and AXA IM MSCI Emerging Markets Equity PAB UCITS ETF are sub-funds of the Irish-domiciled ICAV AXA IM ETF with registered address at 33 Sir John Rogerson’s Quay, Dublin 2, Ireland, and registered with the Central Bank of Ireland under the number C469468. AXA IM ETF ICAV is a collective asset-management vehicle under the European UCITS directive. It is managed by AXA Investment Managers Paris, a company incorporated under the laws of France, having its registered office located at Tour Majunga, 6 place de la Pyramide, 92800 Puteaux, registered with the Nanterre Trade and Companies Register under number 353 534 506, and a Portfolio Management Company, holder of AMF approval no. GP 92008, issued on 7 April 1992.}

^{The MSCI World Climate Paris Aligned Index and the MSCI Emerging Markets Climate Paris Based Aligned Index have been used by AXA IM as the reference universe for selection of the companies included in the AXA IM MSCI World Equity PAB UCITS ETF and the AXA IM MSCI Emerging Markets Equity PAB UCITS ETF. MSCI does not in any way sponsor, support, promote or endorse the AXA IM MSCI World Equity PAB UCITS ETF and the AXA IM MSCI Emerging Markets Equity PAB UCITS ETF. MSCI was not and is not involved in any way in the creation, calculation, maintenance, or review of AXA IM MSCI World Equity PAB UCITS ETF and the AXA IM MSCI Emerging Markets Equity PAB UCITS ETF. The MSCI World Climate Paris Aligned Index and the MSCI Emerging Markets Climate Paris Based Aligned Index were provided on an “as is” basis. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating the MSCI World Climate Paris Aligned Index and the MSCI Emerging Markets Climate Paris Based Aligned Index (collectively, the “MSCI Parties”) expressly disclaim all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose). Without limiting any of the foregoing, in no event shall any of the MSCI Parties have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages in connection with the MSCI World Climate Paris Aligned Index and the MSCI Emerging Markets Climate Paris Based Aligned Index or the AXA IM MSCI World Equity PAB UCITS ETF and the AXA IM MSCI Emerging Markets Equity PAB UCITS ETF.}

^{Issued by AXA Investment Managers Paris – Tour Majunga – 6, place de la Pyramide – 92908 Paris La Défense cedex, France.}