Amundi is set to change the underlying indices on six fixed income ETFs to ESG as demand for sustainable products in the bond space continues to soar.
The six ETFs are:
- Amundi Euro Corporates UCITS ETF (CC4)
- Amundi Floating Rate Euro Corporate 1-3 UCITS ETF (AFRN)
- Amundi Floating Rate USD Corporate UCITS ETF (AFLT)
- Amundi Euro Corporate Financial iBoxx UCITS ETF (AFIN)
- Amundi Euro High Yield Liquid Bond iBoxx UCITS ETF (AHYE)
- Amundi BBB Euro Corporate Investment Grade UCITS ETF (CBBB)
All six core fixed income ETFs will track ESG versions of the same iBoxx index except the €706m CC4 which has switched from the Markit iBoxx Euro Liquid Corproates Top 75 Mid Price TCA index to the Bloomberg Barclays MSCI Euro Corporate ESG Sustainability SRI index.
The ETFs will be classified under Article 8 of the Sustainable Finance Disclosures Regulation (SFDR).
Fannie Wurtz (pictured), head of ETF, indexing and smart beta at Amundi, commented: “ESG is at the centre of all of our client conversations and at the core of our product development strategy.
“Today, every new product is systematically considered through an ESG lens and we also continually assess the interest in transitioning to ESG exposures in line with investors’ expectations.”
Europe’s largest asset manager has been increasing its focus on fixed income ESG in recent months. In April, the firm launched its first climate bond ETF that tracks the Paris Aligned Benchmark (PAB), the Amundi iCPR Euro Corp Climate Paris Aligned PAB UCITS ETF (PABC).
Amundi has been active in moving a number of equity ETFs to ESG indices including the Amundi UK IMI SRI UCITS ETF (FT1K) which saw its index changed from the FTSE 100 to the MSCI UK IMI SRI Filtered Ex Fossil Fuels index last October.
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