According to Amundi, the ETF will allow investors to “shift their core euro government bonds building block towards a responsible exposure” by tracking the Bloomberg Euro Treasury Green Bond Tilted index.
This index measures the performance of investment grade euro-denominated fixed rate government debt, with the ETF focusing on euro investment grade government bonds and a higher proportion of sovereign green bonds, which make up at least 30% of the index.
SIF 2023: SFDR has ‘changed thinking’ around private capital investment
This specification grants the ETF an Article 8 SFDR rating.
Amundi said the index provided a “broad exposure to a fixed income segment particularly in demand in the current economic environment” while also “contributing to finance the energy transition”.
The original Amundi Govt Bond Euro Broad Investment Grade ETF was launched in 2009 and previously tracked the FTSE Eurozone Government Broad IG index, reaching almost €500m in assets under management.
Arnaud Llinas, head of ETF indexing and smart beta at Amundi, said the change came on the back of clients’ demand for “innovative solutions combining sovereign bond investments with an ESG stance”, adding: “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 new version will have an ongoing charges fee of 0.14%, maintaining the fees from the original portfolio.
