Carbon transition global core credit
A resilient, global climate-aware buy and maintain credit fund
The opportunity
Our Buy and Maintain credit portfolios provide a low turnover, low-cost solution to investing in credit markets. Our buy and maintain strategy is very much actively managed, avoiding many of the pitfalls of passive investing, such as:
- being the forced seller of downgraded bonds
- shifting risk exposures to the most indebted sectors and issuers
- limited access to global credit markets.
Our active global buy and maintain approach provides broad access to global credit markets while maintaining a lower cost typically not associated with active funds.
We provide:
- A diversified portfolio harnessing the depth and breadth of global credit market
- A cost-efficient, low turnover approach that minimizes transaction costs
- A Net Zero objective that supports investors Responsible Investment goals
Strategy highlights
Credibility
As market leaders in bond investing, we have partnered with insurance and pension fund clients for three decades to develop innovative, outcome-oriented investment solutions to meet their evolving financial, regulatory and stakeholder needs.
The full breadth of our credit investing and trading expertise, along with our leading sustainable investing capabilities and state of the art tools, are used to design and construct portfolios that help you achieve your targeted investment outcomes sustainably.
Sustainability
We use our extensive analyst resource and proprietary Net Zero Alignment Colours Framework to monitor issuers and portfolio decarbonisation. Portfolio construction favours more-aligned over less-aligned issuers and uses client flows and re-investments to rebalance carbon exposure over time. We apply the exclusion policies from our broader responsible investment approach and avoid climate laggards. Engagement is one of the most powerful tools we have to encourage companies to reduce carbon emissions. Divestment remains an option of last resort, but we believe that holding a bond gives us a greater opportunity to improve outcomes for investors and the world.
Transparency
We provide a detailed quarterly ‘Net Zero Alignment’ report for every client showing the evolution of portfolio emissions over time, % SBTi commitments and our proprietary net zero ‘colours’ framework allocation, based on the IIGCC Net Zero Investment framework.
It includes a scenario analysis slide, Implied Temperature Rise and a market-leading corporate biodiversity footprint metric.
This detailed level of reporting will help clients with their own reporting responsibilities on TCFD.
Sustainability Disclosure Requirements
The FCA’s Sustainability Disclosure Requirements (SDR) help investors to find products that match their own sustainability requirements. We adopted the Sustainability Improvers label for the AXA Carbon Transition Core Credit Fund in December 2025.
As part of the SDR regulations, fund managers have to produce a report for all funds that include sustainability or environmental, social and governance (ESG) considerations in their investment approach. For funds that have adopted a sustainability label, this includes data to show how effectively they are achieving their goal. View the fund’s SDR report and other key information here.
Investment risks
Investments are subject to market fluctuations and other risks inherent to investing in securities. The value of investments and the income they generate may rise or fall and it is possible that investors may not recover their initial investment.
- Counterparty Risk
- Derivatives
- Interest Rate Risk
- Liquidity Risk
- Credit Risk
- Carbon transition risk
For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and KIID.
Important information
Marketing communication. For professional investors only.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund’s) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.
Fixed income sub-funds may be exposed to other risks defined below:
CAPITAL LOSS RISK: The value of the investments in Financial Instrument(s) and the returns generated by the described funds may go down as well as up. Investors may not get back the amount they originally invested.
INTEREST RATE RISK: The value of an investment may be affected by interest rate fluctuations. Interest rates may be influenced by several elements or events, such as monetary policy, the discount rate, inflation, etc.
CREDIT RISK: This is the risk that may derive from the rating downgrade of a bond issuer to which the sub-funds are exposed, which may therefore cause the value of the investments to go down. Sub-funds investing in high-yield bonds present a higher than average risk due to the greater fluctuation of their currency or the quality of the issuer.
COUNTERPARTY RISK: This risk relates to the quality or the default of the counterparty with which the Management Company negotiates, in particular involving payment for/delivery of financial instruments and the signing of agreements involving forward financial instruments. This risk is associated with the ability of the counterparty to fulfil its commitments (for example: payment, delivery and reimbursement). This risk also relates to efficient portfolio management techniques and instruments. If counterparty does not live up to its contractual obligations, it may affect investor returns.
MMFs ARE NOT GUARANTEED INVESTMENTS. An investment in MMFs is different from an investment in deposits, there is a risk that the principal invested in an MMF is capable of fluctuation. The MMF does not rely on external support for guaranteeing the liquidity of the MMF or stabilising the NAV per unit or share. The risk of loss of the principal is to be borne by the investor.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) INVESTMENT RISK: The lack of common or harmonized definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, the Sub-Fund’s performance may at times be better or worse than the performance of relatable funds that do not apply such standards.
This is not an exhaustive list of risks. For a full description of risks associated with each fund, please consult a client relationship manager or the global BNP Paribas Asset Management website: staging.bnpparibas-am.co.uk.