LifeSight, a Willis Towers Watson, defined contribution master trust has invested £400m in seed funding for AXA Investment Managers’ global transition credit fund. The AXA Carbon Transition Global Core Credit Fund is a UK-domiciled fund that AXA says incorporates a ‘selective and forward-looking’ approach.
The fund, which has adopted the ‘sustainability improvers’ label under the UK’s Sustainability Disclosure Requirements (SDR), will invest in companies based on ‘clear and credible commitments’ to a net zero by 2050 pathway.
“We are proud to have consistently been one of the top performing master trusts in recent years and are constantly looking for ways to further improve member outcomes. We are therefore delighted to have partnered with AXA IM to access global credit markets”, said Andrew Doyle, lead investment advisor to LifeSight.
Doyle notes that the allocation will be beneficial for members invested in LifeSight’s default strategy during later stage accumulation and decumulation.
“It will help manage risk for these individuals during these important stages by providing valuable geographic diversification and through incorporating climate risk”, he added.
LifeSight’s initial seed capital funding of £400m is expected to rise to £1bn by 2027.
According to AXA IM, the fund - which builds on its DC product offering - is designed to offer “robust core building block for pension investors seeking broad, diversified credit exposure”.
“With over £250bn in buy and maintain credit assets, our growth is a result of our constant innovation. As such, working with LifeSight to launch a carbon transition credit product showcases AXA IM’s continued innovation in the DC pension and sustainability space”, commented AXA IM’s head of fixed income investment solutions Lionel Pernias.
