(Boursier.com) — Amundi the leading European asset manager of ETFs, is complementing its range of climate ETFs with a new ETF on corporate bonds denominated in dollars which replicates a PAB (Paris-Aligned Benchmark) climate index.
The Amundi USD Corporate Bond Climate Net Zero Ambition PAB – UCITS ETF tracks the Bloomberg MSCI USD Corporate Paris Aligned Green Tilted index. With an ongoing charge of 0.14%, this is the most price competitive ETF on this exposure.
The index tracked by the ETF provides exposure to investment grade dollar-denominated corporate bonds, applies strict ESG exclusion filters for companies involved in controversial activities, and is designed to be compliant with criteria of the European Union’s PAB (Paris-Aligned Benchmark) climate indices, aiming to achieve carbon neutrality by 2050 and limit global warming to 1.5oC on average.
Thus, the index replicated by this ETF also follows a trajectory of absolute reduction in carbon emissions of 7% per year and integrates an immediate reduction of 50% in carbon intensity compared to the initial investment universe. In addition, the index overweights green bonds in order to favor companies with financing needs for environmental projects.
Benoit Sorel, Head of Amundi’s ETF, Indexing & Smart Beta business line, said: “Amundi offers the widest choice of responsible UCITS ETFs on the market, including an interesting range of equity and bond ETFs aligned with objectives of the Paris Agreement. We are delighted to complement it with this new product and thus give more choice to investors wishing to integrate decarbonization objectives into their portfolios.”
This initiative is part of the Crédit Agricole Group’s Societal Project and its commitment to contribute to the fight against climate change.
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