Fund Solutions

Amundi Expands Climate ETF Range

France-based asset manager Amundi has introduced a new US dollar-denominated corporate bond exchange-traded fund (ETF), tracking a Paris-aligned benchmark (PAB) index for investors. The Amundi USD Corporate Bond PAB Net-Zero Ambition fund will be tracking the Bloomberg MSCI USD Corporate Paris-Aligned Green Tilted Index, with ongoing charges of 0.14% – which according to the firm makes it “the most competitive ETF on this exposure”. The index provides exposure to US dollar-dominated investment grade corporate bonds, implements strict ESG exclusions for companies involved in “controversial” activities, and complies with the EU Paris-aligned benchmark’s requirements of supporting a net zero by 2050 and limiting the global average temperature rise to 1.5°C. The index also follows the trajectory of a 7% absolute carbon emissions reduction on an annual basis, and an immediate reduction of 50% of the carbon intensity compared to the investable universe. In addition, it integrates a “green bond tilt” – overweighting the green bonds included in the index and favouring companies with financing needs for green projects. “ETFs are important building blocks in supporting the decarbonisation of bond portfolios,” said Benoit Sorel, Head of ETF, Indexing and Smart Beta at Amundi “With this new [fund], we will continue to expand our broad range of climate-conscious ETFs for investors wishing to integrate decarbonisation objectives into their portfolios, both in equity and fixed-income asset classes.”Amundi said it now has the largest ESG and climate ETF offering, with about 100 UCITS ETFs.

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