Amundi has expanded its range of fixed income ETFs with the launch of the Euro Government Tilted Green Bond UCITS ETF.
Europe’s largest asset manager’s Article 8 bond will track the Bloomberg Euro Treasury Green Bond Tilted Index, which has around 360 issues and 10 countries.
The index aims to maintain the same risk profile, including duration and country allocation, as the parent index, with a low tracking error.
The ETF will give investors 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.
Arnaud Llinas, the head of ETF, indexing & smart beta at Amundi, emphasises the demand from clients for innovative investment solutions that integrate sovereign bonds and ESG principles. “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 ETF is the result of the transformation of the Amundi Govt Bond Euro Broad Investment Grade UCITS ETF DR, and so will have an initial AUM of nearly €500 million.
Dave Gedeon, CEO, Bloomberg Index Services Limited, said: “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 new ETF follows Amundi’s launch of a suite of seven net zero funds back in April to support the transition to a low-carbon economy.
This week, BlackRock launched an Article 8 fund that targets carbon transition in the materials sector.
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