Industry Updates

Amundi unveils euro government green bond ETF following index switch

CB3 drops FTSE Russell for Bloomberg tilted green bond index

Theo Andrew

European central bank euro symbol

Amundi has turned a eurozone government fixed income ETF into a green bond ETF after switching the index.

The Amundi Government Bond Euro Broad Investment Grade UCITS ETF has been renamed the Amundi Euro Government Tilted Green Bond UCITS ETF (CB3) following the change on 7 June.

CB3, which has a total expense ratio (TER) of 0.14%, went from tracking the FTSE Eurozone Government Broad IG index to the Bloomberg Euro Treasury Green Bond Tilted index.

The new index is based on the Euro Treasury €50bn Bond index, measuring the performance of investment grade euro-denominated fixed rate government debt.

The index achieves its tilt by allocating at least 30% of the index to securities classified as green bonds.

As a result, the ETF has been reclassified from Article 6 to Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

CB3 currently houses €521.7m assets under management and has returned 2.5% this year, as at 15 June.

Arnaud Llinas, head of ETF, indexing and smart beta at Amundi, said: “Clients have asked for innovative solutions combining sovereign bond investments with an ESG stance and 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.”

Dave Gedeon, CEO, Bloomberg Index Services Limited, said: “The Bloomberg Euro Treasury Green Bond Tilted index is a new index solution that we believe can be the standard for inclusion of ESG factors in treasuries.

"Ensuring we create indices that directly address concerns of the global investment community is always top of mind and so we are proud to license this new index to Amundi for their ETF."

It is the latest switch to an ESG index by Amundi after it changed the index on its oil and gas ETF to one that includes an ESG screening methodology.

Last month, Amundi switched the indices on four ETFs to ones that track ESG metrics including the €396m Amundi STOXX Global Artificial Intelligence UCITS ETF (GOAI).

Europe’s largest asset manager is aiming to have 40% of its ETF range made up of ESG products by 2025, almost double the 23% it currently housed when it announced the targets in December 2021.

Amundi is continuing to merge its product range following its acquisition of Lyxor last year in a bid to consolidate its product range and benefit from economies of scale.

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