Launch of a new Euro Government Tilted Green Bond UCITS ETF
Share
Amundi expands its Fixed Income ETF range with a new Euro Government Tilted Green Bond UCITS ETF.
London, 15 June 2023 – Amundi, the largest European asset manager and the leading European ETF provider1, announces the launch of a new Euro Government Tilted Green Bond UCITS ETF. Based on a unique approach, this ETF enables investors to shift their core Euro government bonds building block towards a responsible exposure.
The Amundi Euro Government Tilted Green Bond UCITS ETF tracks the Bloomberg Euro Treasury Green Bond Tilted Index2. It provides exposure to Euro Investment Grade Government bonds with a higher proportion of sovereign Green Bonds so they make up at least 30% of the index. This means Amundi has classified the ETF under SFDR Article 83.
The Bloomberg Euro Treasury Green Bond Tilted Index aims to maintain the same risk profile, including duration and country allocation, as the parent index, with a low tracking error4. It is well diversified with around 360 issues and 10 countries. This index profile allows the ETF to offer a broad exposure to a fixed income segment particularly in demand in the current economic environment, while contributing to finance the energy transition.
Clients have asked for innovative solutions combining sovereign bond investments with an ESG stance and we believe this new ETF is a great addition to our product range and a concrete investment tool to finance the transition to a low carbon economy.
The Bloomberg Euro Treasury Green Bond Tilted Index is a new index solution that we believe can be the standard for inclusion of ESG factors in treasuries. Ensuring we create indices that directly address concerns of the global investment community is always top of mind and so we are proud to license this new index to Amundi for their ETF.
The Amundi Euro Government Tilted Green Bond UCITS ETF is the result of the transformation of our Amundi Govt Bond Euro Broad Investment Grade UCITS ETF DR and comes with an initial AuM of close to €500 million5 and ongoing charges at only 0.14%6. This ETF adds to Amundi’s existing responsible range which is already the largest ESG UCITS ETF offering available in the European ETF market7.
1 Source: Amundi as at 31/03/2023.
2 For more information about the index methodology please refer to www.bloomberg.com.
3 SFDR: “Sustainable Finance Disclosure Regulation” – 2019/2088/EU. EU regulation that requires, amongst other things, the classification of financial products according to their ESG intensity. A fund is referred to as “Article 8” if it promotes ESG characteristics in tandem with other financial objectives, or “Article 9” when it has a sustainable investment objective. Any fund that does not comply with the two previous categories is an “Article 6” fund.
4 Source Amundi ETF: 1 Year tracking error vs parent index = 0.42%.
5 Source: Amundi ETF - AUM as of May 2023
6 Ongoing charges - annual, all taxes included. The ongoing charges represent the charges taken from the fund over a year. Until the fund has closed its accounts for the first time, the ongoing charges are estimated. Transaction cost and commissions may occur when trading ETFs.
7 Source: ETFGI report - March 2023