The Amundi Index Equity Global Low Carbon and Amundi Index Equity Europe Low Carbon funds will seek opportunities in the global and European spectrums, replicating the MSCI World Low Carbon Leaders and the MSCI Europe Low Carbon Leaders indexes respectively.
Managed by Laurent Trottier, Amundi’s global head of index management and smart beta, alongside Lionel Brafman, head of index and multi-strategies, and senior portfolio manager Isabelle Lafargue, the funds will seek a 50% reduction in carbon emissions against their respective indexes.
Currently available to both UK institutional and retail investors, the index funds comprise a number of different sterling and euro-denominated share classes with ongoing charges varying between 0.09% and 0.6%.
In addition to the index funds, Amundi has also unveiled an ETF that will track the MSCI World Low Carbon Leaders Index, carrying a total expense ratio of 0.25%.
"Combining low carbon exposure and low tracking error is resonating so significantly with investors,”
Explaining the decision for the launches, Valerie Baudson, Amundi’s global head of ETF, indexing and smart beta, highlighted investor demand following the firm’s collaboration with MSCI to launch the Low Carbon Leaders indexes in September 2014.
“It is very gratifying to see that combining low carbon exposure and low tracking error is resonating so significantly with investors,” she said. “Our recent development in this area, along with our close involvement in the Portfolio Decarbonization Coalition, illustrates our determination to address client investment needs effectively.”
Currently listed on the Euronext Paris, Amundi confirmed that the ETF will be available on the London Stock Exchange “in coming months”.
