AmundiEurope’s first asset manager, today announced the launch of a new ETF exposed to corporate bonds in euros and in line with the Paris Agreement, thereby confirming the asset manager’s commitment to offering investors a broad and detailed range of climate-friendly ETFs.
In particular, it is theAmundi EUR Corporate Bond Climate Net Zero Ambition PAB UCITS ETF built to replicate theindice Bloomberg MSCI Euro Corporate Paris Aligned Green Tiltedan index designed to be in line with the objectives of the Paris Agreement.
How does it work
The index tracked by the ETF provides aexposure to euro-denominated investment grade corporate bondsapplies a strict ESG exclusion approach to companies involved in controversial activities and complies with the criteria of the PAB climatic indexes (Paris Aligned Benchmark) of the European Union, designed to be in line with the objectives of the Paris Agreement to achieve carbon neutrality by 2050 and limit the global average increase in temperature to 1.5°C.
In this sense, this ETF follows a trajectory of decarbonisation of 7% on an annual basis and integrates an immediate reduction of 50% of the carbon intensity compared to the investable universe. Additionally, the index incorporates a preference for green bonds, thereby overweighting included green bonds and favoring companies with financing needs for green projects.
In detail, the new ETF ongoing charges are 0.14% and with assets under management amounting to over 900 million euro. It is the most competitive ETF on this exposure and among the largest available on the market. This new exposure is the result of an index change and a renaming of the Lyxor ESG Euro Corporate Bond (DR) UCITS ETF, performed on 11 January. Amundi has the largest offering of ESG and climate ETFs available on the market with around 100 UCITS ETFs.
“ETFs are important tools to support the climate transition of bond portfolios,” comments Arnaud Llinas, Head of ETFs, Indexing & Smart Beta at Amundi. “With this new ETF, we continue our efforts to transform our product range to provide investors with a broad range of both equity and bond climate ETFs.”
This initiative is part of the Societal project of Gruppo Crédit Agricole and in its commitment to the climate.