Wednesday 28 April 2021

Corporate

Amundi lists new Paris-Aligned Fixed Income ETF, tracking Solactive Index

With Paris-aligned investing becoming the actual state amongst conscious investors, Europe’s largest asset manager, Amundi, licensed the Solactive iCPR Climate Credit PAB Index for the latest expansion of its Paris-aligned ETF solutions. The release of the Amundi iCPR Euro Corp Climate Paris Aligned PAB – UCITS ETF DR rounds out its formerly equity-based line-up with a fixed income variant, giving investors an effective tool to both diversify and decarbonize their portfolio. The ETF was listed on Xetra on April 27th, 2021.

The Paris agreement is recognized as one of the world’s most significant conventions. Its main goal is to keep the increase of global average temperature below a critical threshold of 2°C. While the Paris agreement puts the responsibility to meet the desired targets into politician’s hands, investors seek to make a difference with their investment decisions, too. Amundi’s new Amundi iCPR Euro Corp Climate Paris Aligned PAB – UCITS ETF DR tracking the Solactive iCPR Climate Credit PAB Index allows investors to take climate change into their own hands.

The Solactive iCPR Climate Credit PAB Index was designed in collaboration with Amundi’s thematic expert subsidiary CPR Asset Management. The index gives investors exposure to investment-grade euro corporate bonds aligned with the Paris Agreement, providing a portfolio that, based on climate analysis by CDP, is in line with a 1.5°C scenario through 2050. To achieve its desired 1.5°C scenario, the index reduces the average carbon emissions against its benchmark by 50% and on an annual basis and, thereby, features additional year-on-year self-decarbonization of -7%.

In addition to its environmental tilt, the index incorporates a broad ESG screening based on normative and sector criteria. More precisely, companies that do not comply with the UN Global Compact filter, as well as companies deriving a respective revenue from coal, oil, and natural gases, are excluded from the index.

Matthieu Guignard, Global Head of Product Development and Capital Markets – Amundi ETF, Indexing & Smart Beta, says“As pioneers in climate index solutions, we are delighted to build on our partnership with Solactive for the launch of this innovative index strategy.  Amundi created the first climate index in 2014. Now, with the addition of a fixed income climate PAB ETF, we offer investors a full suite of tools to align their portfolios with the decarbonization objectives of the Paris Agreement.”

Timo Pfeiffer, Chief Markets Officer at Solactive, comments: ”Solactive’s longstanding innovative strengths in ESG indices roots from our commitment to provide our clients with the most seamless and fitting ESG solution. We are happy that Amundi has again chosen us as their index provider of trust, and we are pleased that with our indices, investors have the chance to make the world a greener place.”

Gilles Cutaya, Deputy CEO of CPR Asset Management, says: “We are proud to have contributed to the design of the Solactive iCPR Climate Credit PAB Index by leveraging our special partnership with CDP, as well as our track-record as an active climate-focused fund manager and our expertise in portfolio decarbonization. CPR AM is determined to expand its capacities in Paris-aligned investing through the construction of innovative investment solutions.”

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