Industry Updates

ETF Wrap: ETF launches target central banks

An ETF partnership with a central bank, potential delays to the UK OFR and a raft of new products made headlines this week

Jamie Gordon

This week saw ETF issuers look to tap the increased usage of ETFs by central banks with Amundi unveiling a strategy capturing issuance from issuers boasting high ESG ratings.

The Amundi Global Corporate SRI 1-5Y Highest Rated UCITS ETF (A8KI) 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 of global corporate bonds with between one and five years to maturity and an MSCI ESG rating of BBB+ or higher.

The ETF was seeded and co-designed by the Latin America Reserve Fund (FLAR), with the goal of addressing central bank requirements for transparency, diversification and performance.

The news marks just the latest central bank involvement in ETFs, with the Bank of Japan boasting a $462bn ETF by the end of March.

General Election OFR delay

Elsewhere, Peter Capper, senior adviser of fund regulation at the Investment Association, said at a recent ETF Stream webinar the UK General Election would cause only ‘slight slippage’ to the timeline of the upcoming Overseas Funds Regime (OFR).

While a joint timetable published by the Financial Conduct Authority (FCA) and UK Treasury in March stated applications under the OFR would open from September, the closure of Parliament has delayed the review of some statutory instruments concerning marketing permissions and the treatment of umbrellas containing non-UCITS vehicles.

“There will be something to sort out after the election with the TMPR which does possibly influence the timetable slightly. We are not expecting any huge delays, but maybe slight slippage in the timetable,” Capper said.

Launches across asset classes

Issuers continued to expand their ranges with fixed maturity bond and developed market equity launches ahead of the summer lull.

On Monday, Invesco extended its fixed maturity suite with five ETFs targeting euro corporate bonds with maturities between 2026 and 2030:

  • Invesco BulletShares 2026 EUR Corporate Bond UCITS ETF (BE26)

  • Invesco BulletShares 2027 EUR Corporate Bond UCITS ETF (BE27)

  • Invesco BulletShares 2028 EUR Corporate Bond UCITS ETF (BE28)

  • Invesco BulletShares 2029 EUR Corporate Bond UCITS ETF (BE29)

  • Invesco BulletShares 2030 EUR Corporate Bond UCITS ETF (BE30)

On the same day, Franklin Templeton expanded its core equity offering with the Franklin FTSE Developed World UCITS ETF (DWLD), carrying a total expense ratio (TER) of 0.09%.

ETF Wrap is a weekly digest of the top stories on ETF Stream

Featured in this article


No ETFs to show.