Industry Updates

Amundi switches Japan ETF to climate index

The €570m ETF will now adhere to CTB requirements

Theo Andrew

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Amundi has switched the index on its Japan equity ETF to one that tracks a Climate Transition Benchmark (CTB).

In a shareholder notice, the asset manager said the Amundi Index MSCI Japan UCITS ETF (CJ1G) has moved from tracking the MSCI Daily Net Total Return Japan Euro to the MSCI Japan ESG Broad CTB Select index on 20 January.

As a result, the ETF has been renamed the Amundi MSCI Japan ESG Climate Net Zero Ambition CTB UCITS ETF (J1GR) with a total expense ratio (TER) of 0.45%. J1GR currently has €570m assets under management.

The new index tracks large and mid-cap Japanese equities while maximising exposure to ESG factors and meeting the CTB requirements laid out by the European Union.

The index aims to reduce the weighted average greenhouse gas intensity by 30% versus the parent index as well as employ an annual decarbonisation rate of 7%.

The largest exposure in the index is Toyota Motor with a weighting of 4.9%, followed by Sony (3.3%), electronic company Keyence (2.6%) and Mitsubishi (2.1%).

The ETF is labelled Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

It comes after Amundi downgraded its €19bn Paris Aligned Benchmark (PAB) and CTB range in November last year.

Europe’s largest asset manager said it welcomed the regulation but cited uncertainty around its application, particularly around the definition of “sustainable”.

The firm has merged several ETFs in recent months as it looks to achieve economies of scale following its acquisition of Lyxor in January 2022.

Last December, the asset manager switched to a PAB index on its Lyxor ESG Euro Corporate Bond UCITS ETF, renaming it the Amundi EUR Corporate Bond Climate Net Zero Ambition PAB UCITS ETF.

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