ACT Green Bonds ZI Capitalisation EUR

Fund objective

Investment Objective To seek both income and growth of your investment, in EUR, and a sustainable investment objective, from an actively managed bonds portfolio contributing to financing of the energy and ecology transition and demonstrating a positive environmental impact. Investment Policy The Sub-Fund is actively managed in reference to the BofA Green Bond Hedged benchmark index (the “Benchmark”) in order to capture opportunities in the investment grade government, institutions - such as supranational, agencies and quasi-government – and corporate bonds markets. The Sub- Fund invests at minimum one third of its net assets in the components of the Benchmark. Depending on its investment convictions and after comprehensive macroeconomic and microeconomic analysis of the market, the Investment Manager can take more active positioning in terms of duration (duration measures in numbers of years, the portfolio's sensitivity to interest rate variations), geographical allocation and/or sector or issuer selection compared to the Benchmark. Thus, the deviation from the Benchmark is expected to be significant. However, in certain market conditions (high credit market volatility, turmoil…), the Sub-Fund's positioning on the above indicators may be close to the Benchmark. The Sub-Fund invests minimum 75% of its net assets in bonds financing environmental projects (Green Bonds). The Sub-Fund aims to support on the long run the SDGs established by the United Nations with a focus on the environmental themes and involves purchasing bonds where the proceeds are earmarked for projects which support a low carbon economy or the basic needs of underserved populations and communities, by financing initiatives such as renewable energy, pollution prevention, access to healthcare, affordable housing and women empowerment. In the securities selection process, firstly, the Sub-Fund bindingly applies at all times AXA IM's Sectorial Exclusion and ESG Standards Policies except for derivatives and underlying UCIs https://www.axa-im.co­ m/our-policies. Then, the Investment Manager applies a proprietary green, social and sustainability bonds assessment framework, mainly based on the ICMA Green and Social Bond Principles and the Climate Bonds Initiative guidelines that employs a rigorous selection process by filtering out bonds which are not in line with the AXA IM's green bond framework composed of 4 pillars: the environmental, social and governance (ESG) quality of the issuer, the use of proceeds, the management of proceeds and the ESG impact, as further described in the prospectus. Secondly, the investment manager uses a number of factors, including macro- and microeconomic analysis and credit analysis of issuers. The investment manager also manages the interest rate sensitivity, the yield curve positioning and the exposure to different geographical areas.