AXA IM launches two new active Fixed Income ETFs

These two new exposures complement the existing active ETFs range, drawing on AXA IM’s recognised expertise in Fixed Income investing and active portfolio management.

1. AXA IM Global Inflation-Linked Bond Opportunities UCITS ETF (ACPI)

AXA IM Global Inflation-Linked Bond Opportunities UCITS ETF offers exposure to an actively selected portfolio of inflation-linked bonds issued by OECD¹ member governments included in the Bloomberg World Government Inflation 1-10 year Total Return Index (USD Hedged). This ETF charges a Total Expense Ratio (TER) of 0.20%².

AXA IM Global Inflation-Linked Bond Opportunities UCITS ETF (tickers: ACPI for the accumulation share class and AFDU for the distribution share class) is available in USD and EUR on Deutsche Boerse – XETRA, and will soon be available on Borsa Italiana and SIX Swiss Exchange.

2. AXA IM Short Duration Income UCITS ETF (ASHU)

AXA IM Short Duration Income UCITS ETF offers exposure to an actively selected portfolio of high-quality, short-duration Investment Grade bonds issued by governments, companies or public institutions worldwide. Its investment universe is the Bloomberg Global Aggregate Corporate 1-3 Yrs Total Return Index (Hedged USD). This ETF charges a Total Expense Ratio (TER) of 0.19%³.

AXA IM Short Duration Income UCITS ETF (tickers: ASHU for the accumulation share class and ASLU for the distribution share class) will soon be available in USD and EUR on Deutsche Boerse – XETRA, Borsa Italiana and SIX Swiss Exchange.

Olivier Paquier, Global Head of ETF Sales at AXA IM, said: “With these two new active ETFs, we are continuing to expend our range in line with our ambition: to offer investors a wide range of relevant and innovative investment solutions, enabling them to further diversify their portfolios. These two active ETFs combine two of AXA IM's key areas of expertise: conviction-driven management based on rigorous proprietary research and the proven experience of our Fixed Income investment teams.”

At launch, these two ETFs will be available for institutional and retail investors in Austria, Denmark, France, Germany, Ireland, Italy (limited to institutional investors pending their listings in Italy), Liechtenstein, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden.

These two ETFs are managed in a physical manner and are classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR)⁴.

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.

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

Interest rate risk: This corresponds to the risk of depreciation in rate-based instruments over either the short or medium term stemming from interest rate variations. For purposes of illustration, the price of a fixed-rate bond tends to decrease as interest rates increase. The ETFs are particularly exposed to bonds and other debt securities; in the event of a rise in interest rates, the value of assets invested at a fixed rate may fall.

Credit risk: In the event of default or deterioration of the quality of private bond issuers (for example, a reduction in rating), the value of debt securities in which the ETFs are invested may fall. ​ In such case, the Net Asset Value of the ETFs may fall.

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.

Inflation-Linked bonds risk: Inflation-linked bonds are special types of indexed bonds that are tied to indices that are calculated based on the rates of inflation for prior periods. The value of inflation-linked bonds generally fluctuates in response to changes in real interest rates. The market for inflation-linked bonds may be less developed or liquid, and more volatile, than certain other securities markets.

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). The value of investments may fall as well as rise and you may not get back the full amount invested.

_{1 The Organisation for Economic Co-operation and Development (OECD)}

_{2 ISIN codes of the share classes: ISIN IE000J4FE268 (max TER: 0,20%), ISIN IE0004D7VJE6 (max TER: 0,20%). Investment will be reduced by the costs mentioned and these fees do not take into account any transaction fees charged by intermediaries.}

_{3 ISIN codes of the share classes: ISIN IE000N3TZN02 (max TER: 0,19%), ISIN IE000P0AMD16 (max TER: 0,19%). Investment will be reduced by the costs mentioned and these fees do not take into account any transaction fees charged by intermediaries.}

_{4 The classification of AXA IM Global Inflation-Linked Bond Opportunities UCITS ETF and AXA IM Short Duration Income 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 press release. 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 Global Inflation-Linked Bond Opportunities UCITS ETF and AXA IM Short Duration Income 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.}

Arnaud Verwacht

PR Consultant, Bepublic Group

• +32 476 03 71 14