Amundi, Europe’s largest asset manager has announced the launch of the Amundi Global Corporate SRI 1-5Y Highest Rated UCITS ETF.
This ETF will launch with an initial investment from the Fondo Latinoamericano de Reservas (FLAR – the Latin American Reserve Fund), the company said in statement earlier today.
The fund replicates the Bloomberg MSCI Global Corporate A+ ESG Sustainability SRI 1-5 Year Index. This ETF offers an exposure to the Global Corporate Developed Universe and, to be included, corporate credit issuers must be “highest rated” with a minimum credit rating of A- and an MSCI ESG Rating of BBB or higher. The methodology also applies other ESG-related exclusions, Amundi said.
Transparency
Amundi codesigned the ETF in partnership with FLAR, with the aim of helping Central Banks achieve their responsible investment objectives. The fund addresses as such Central Banks’ requirements for transparency, diversification, and performance, combined with low tracking error.
Additionally, Investment Grade Corporate bonds have high eligibility particularly among institutional clients and should be well suited to the responsible investment approach.
Fidel Jaramillo, Secretary General at FLAR said: “Our commitment to sustainable investments is reflected in our continuous efforts to align with industry best practices and regional cooperation. By collaborating with our peers in the region and the industry, we are dedicated to driving forward responsible investment strategies that promote transparency, diversification, and performance.
Collaboration
In this collaboration with Amundi, 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”.
Gaëtan Delculee, Global Head of Digital Distribution and ETF Sales at Amundi also commented: “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”.
