Amundi has launched its first fixed income ETF that offers exposure to the European Union’s climate benchmarks.
The Amundi iCPR Euro Corp Climate Paris Aligned PAB UCITS ETF (PABC) is listed on Deutsche Boerse with an ongoing charges figure (OCF) of 0.16%.
Physically replicated, PABC tracks the Solactive iCPR Climate Credit PAB index which offers exposure to euro corporate credit that is aligned with the Paris Agreement.
The ETF is in line with the one of the EU’s climate benchmarks, the Paris Aligned Benchmark (PAB), which aims to reduce greenhouse gas emissions by 50% versus the parent universe and has a decarbonisation target of 7% annually.
Commenting on the launch, Fannie Wurtz, head of ETF, indexing and smart beta at Amundi, said: “The launch of this ETF illustrates our commitment to developing simple, ready-to-use tools that help investors to implement their ESG and climate strategy depending on their objectives and constraints.
“We believe that ETFs have a critical role to play in driving the transition to a low carbon economy.”
Climate change ETFs: A year of dramatic development
Last July, Europe’s largest asset manager launched three climate equity ETFs that are also in line with the EU’s PAB.
Competition in the space is hotting up with BlackRock unveiling two climate equity ETFs on 26 April, the iShares S&P 500 Paris Aligned UCITS ETF (UPAB) and the iShares MSCI World Paris Aligned UCITS ETF (WPAB).
Amundi and BlackRock are currently the only issuers to offer both equity and fixed income ETFs that track the EU’s climate benchmarks.
Lyxor, Franklin Templeton, Deka and UBS Asset Management offer exposure to climate equity ETFs while fixed income specialist Tabula launched Europe’s first climate corporate bond ETF in January.