ACT US High Yield Bonds Low Carbon ZI Capitalization GBP (Hedged)

Fund objective

Investment Objective To seek high income in USD from an actively managed bond portfolio whose carbon footprint is at least 30% lower than that of the ICE BofA US High Yield Index (Benchmark). As a secondary extra-financial objective, the water intensity of the portfolio aims at being at least 30% lower than the Benchmark. Investment Policy The Sub-Fund is actively managed and references the Benchmark by seeking to achieve its extra-financial objectives. The investment manager has full discretion over the composition of the portfolio and may take exposure to companies, countries or sectors not included in the Benchmark, even though the Benchmark constituents are generally representative of the portfolio. The deviation from the Benchmark is likely to be significant. Specifically, the Sub-Fund invests at least 2/3 of net assets in Sub-investment Grade fixed income transferable debt securities denominated in USD-issued by US or non-US private or public companies, i.e. rated below BBB- by Standard & Poor's or equivalent ratings by Moody's or Fitch of, if unrated, judged equivalent to those levels. In addition, the Sub-Fund may invest up to 1/3 in investment grade transferable debt securities denominated in USD issued by US or non-US private or public companies. The total assets of the Sub-Fund may be invested in callable bonds. The Sub-Fund may invest up to 1/3 in US Treasury securities. The selection of debt securities is not exclusively and mechanically based on their publicly available credit ratings but also on an internal credit or market risk analysis. The decision to buy or sell securities is also based on other analysis criteria of the Investment manager. The Sub-Fund may also invest in: money market instruments up to 1/3 convertible securities less than 20% contingent convertible bonds (CoCos) up to 10%. The Sub-Fund may use derivatives for hedging purposes. The investment manager bindingly uses at all times an ESG "extra-financial indicator improvement" approach, as further described in the SFDR Annex. Firstly, the investment manager analyses carbon intensity and water intensity data to ensure that the average of KPI carbon intensity and water intensity calculated at Sub-Fund's level is at least 30% better than that calculated for the Benchmark, followed by the application of a second exclusion filter, described in AXA IM's Sectorial Exclusion Policies and ESG Standards Policies https://https://www.axa-im.com/our-policies . Secondly, the investment manager conducts an evaluation of market views: of economic, valuation, technical analysis of the markets based on a number of factors, including macro- and microeconomic analysis and credit analysis of issuers, and management of the credit curve positioning and the exposure to different sectors. The Sub-Fund also excludes from its investment universe the majority of securities within carbon intensive sub-sectors including Metals, Mining and Steel Producers and most sub-sectors within the Energy and Utility sectors. The ESG data used in the investment process are based on methodologies relying in part on third-party data and in some cases are internally developed, are subjective and may change over time. The lack of harmonised definitions can make ESG criteria heterogeneous. As such, the different investment strategies using ESG criteria and ESG reporting are difficult to compare with each other. Strategies incorporating ESG criteria and those incorporating sustainable development criteria may use data that appear similar but which should be distinguished because their calculation method may be different. AXA IM's ESG different methodologies described herein may evolve in the future to take into account any improvements in data availability and reliability, or any developments of regulations or other external frameworks or initiatives - among others. The Fund is a financial product aiming to achieve a sustainable investment objective within the meaning of article 9 of the Regulation (EU) 2019/2088 of 27 November 2019 on sustainability-related disclosures in the financial sector. The Share Class aims at hedging the foreign exchange risk resulting from the divergence between the reference currency of the Sub-Fund and the currency of this Share Class by using derivatives instruments whilst retaining the exposure to Investment Policy of the Sub-Fund. Income For Capitalisation share classes (Cap), the dividend is reinvested. Sub-Fund Currency The reference currency of the Sub-Fund is USD. Investment Horizon This Sub-Fund may not be suitable for investors who plan to withdraw their contribution within 5 years. Processing of subscription and redemption orders The subscription, conversion or redemption orders must be received by the Registrar and Transfer Agent on any Valuation Day no later than 3 p.m. Luxembourg time. Orders will be processed at the Net Asset Value applicable to such Valuation Day. The investor's attention is drawn to the existence of potential additional processing time due to the possible involvement of intermediaries such as Financial Advisers or distributors. The Net Asset Value of this Sub-Fund is calculated on a daily basis. Minimum initial investment: USD 30,000,000 or the equivalent in the relevant currency of the relevant Share class.