Supporting the transition to a greener economy through a low duration fund 100% invested in green corporate bonds
London, 30 June 2022 – Amundi, the largest European asset manager, announces the launch of Amundi Funds Euro Corporate Short Term Green Bond (“the Fund”), a corporate green bond strategy open to international institutional and retail investors.
The Fund invests exclusively in Green Bonds issued by corporates worldwide whose proceeds are committed to financing environmental and climate-friendly projects aiming to have a measurable and positive impact on the environment. All Green Bonds selected in the portfolio are aligned with the Green Bond Principles (GBPs) and the Fund reports annually on tonnes of CO2 emissions avoided through the implementation of the financed green projects. Furthermore, the Fund aims to protect investors against the risk of rising rates through the implementation of a dynamic duration management.
This follows the successful launch by Amundi of a number of fixed income funds and initiatives aimed at fostering the development of green bonds across market segments and geographies: Amundi Responsible Investing Impact Green Bonds in 2016, Amundi Planet Emerging Green One – among the world’s largest targeted green bond fund dedicated to emerging markets in 2018. The Green Credit Continuum Program, aimed at facilitating market access for smaller green businesses through green high yield bonds, secured assets and private debt jointly launched by Amundi and the European Investment Bank in 2019 and also Amundi Responsible Investing Just Transition for Climate in 2021.The newly created Amundi Funds Euro Corporate Short Term Green Bond is managed by Amundi’s long-standing Corporate Credit team with over 30 years’ track record of managing corporate bonds, and which has been a pioneer on the green bonds market since 2013. The team manages €37 billion in Green Bonds and has extensive experience in ESG integration and management of climate solutions on behalf of some of the world’s largest investors.
Responsible investment at the heart of the Fund’s approach
As a pioneer in responsible investing, Amundi manages over €834 billion in responsible investment assets with over 13000 issuers rated with respect to ESG criteria. Amundi’s recognised ESG analysis process is fully integrated in the investment process and objectives of the Fund.
The Fund is an actively managed solution incorporating both a top-down and bottom-up investment approach. Benefiting from the 44 people strong Credit Research and ESG Analysis teams’ comprehensive issuer-level analysis, the Fund invests in a selection of corporate issuers from a range of sectors including alternative energy sources and utilities, financials, transport and real estate. The Fund seeks to offer investors an attractive yield potential through corporate debt, while supporting the energy transition. In addition it is aligned with the Green Bond Principles and will assess the environmental impact of the green bonds held at each year-end. The Fund publishes an annual impact report which is fully transparent on the issuers screening processes to ensure that the outlined ESG criteria are met.
The Fund is co-managed by Yael Muscat, Senior Credit Portfolio Manager at Amundi, Alban de Faÿ, Head of Responsible Investment Fixed Income process and Hervé Boiral, CFA, head of Euro Credit.
Amaury d’Orsay, Head of Fixed Income at Amundi commented: “Corporate issuers have been increasingly committed to the fight against climate change. This has translated into a growing and increasingly diversified green corporate bond market. Amundi Funds Euro Corporate Short Term Green Bond seeks to enable investors protect their portfolio against rising interest rates whilst also seeking to generate a positive impact.”
The Fund is available within the Amundi Funds flagship Luxembourg SICAV and is currently registered in Luxembourg, Norway, France, Greece, the Netherlands, Austria, UK, Finland, Sweden, Ireland, Belgium, Germany, Switzerland and Spain.