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Amundi launches sustainable global corporate bond ETF for central banks

The ETF will track the ‘highest rated’ corporate bonds

Theo Andrew

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Amundi has launched a “highest rated” sustainable global corporate bond ETF to help central banks achieve their responsible investment objectives.

The Amundi Global Corporate SRI 1-5Y Highest Rated UCITS ETF (A8KI) is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.18%.

A8KI tracks the Bloomberg MSCI Global Corporate A+ ESG Sustainability SRI 1-5 Year index, offering exposure to “highest rated” global corporates with an MSCI ESG rating of BBB or higher.

Amundi said the ETF has been seeded by the Latin America Reserve Fund (FLAR) which also co-designed the fund.

The ETF hopes to address central bank requirements for transparency, diversification and performance.

Gaëtan Delculee, global head of digital distribution and ETF sales at Amundi, said: “Our collaboration with FLAR showcases our client-centric approach and ability to leverage our ETF expertise and leadership in responsible investing to accompany institutions in their ESG journey.

“We believe central banks have a key role in shaping sustainable frameworks and we are proud to partner with FLAR to develop an innovative ESG solution adapted to their needs.”

Fidel Jaramillo, secretary general at FLAR, added: “FLAR has taken the initiative to become the seed investor in this ESG-oriented ETF, addressing critical market gaps and championing responsible investing. By doing so, FLAR contributes to the creation of a public good for the central bank community.”

Central banks globally have been increasing their allocation to ETFs in recent years due to their operational simplicity, ease of trading, liquidity benefits, transparency and low cost.

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