New Listing

AXA IM launches global and emerging market Paris-Aligned ETFs

Expanding its passive PAB range

Theo Andrew

olivier paquier

AXA Investment Managers have launched two Paris-Aligned ETFs tracking global and emerging market equities.

The AXA IM MSCI World Equity PAB UCITS EF (AWDU) and the AXA IM MSCI Emerging Markets Equity PAB UICS ETF (AIQU) have total expense ratios (TERs) of 0.20% and 0.24%, respectively.

AWDU is listed on the Deutsche Boerse and will soon be listed on the Borsa Italiana and SIX Swiss Exchange while AIQU is set to list on all three exchanges “in the coming weeks”.

The global equity ETF tracks the MSCI World Climate Paris Aligned index offering exposure to 600 large and mid-cap equities across 23 industrialised countries.

Meanwhile, AIQU will track 380 large and mid-cap stocks across 24 emerging markets.

Both ETFs integrate recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD) and aim to “succeed” the minimum standards of the Paris-Aligned Benchmark (PAB) requirements.

Under the PAB requirements, the indices will represent a 50% initial greenhouse gas emission reduction relative to their parent indices and will target an additional 7% decarbonisation annually.

AWDU and AIQU are classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

Olivier Paquier (pictured), global head of ETF sales at AXA IM, said: “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.”

In January, the French asset manager expanded its PAB range with the launch of the AXA IM MSCI Europe Equity PAB UCITS ETF (AIME).

Earlier this month, Bloomberg reported AXA and BNP Paribas were considering a potential asset management merger, creating a unit with $1.5trn assets under management.

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