Amundi expands Prime suite with ultra-short euro govies ETF

Oct 21st, 2020 | By | Category: Fixed Income

Amundi has expanded its ‘Prime’ suite of low-cost core ETFs with the launch of an ultra-short-duration euro government bond fund.

Amundi expands Prime suite with ultra-short euro govies ETF

The fund provides ultra-short exposure to euro-denominated government bonds from eurozone issuers.

The Amundi Prime Euro Gov Bonds 0-1 Y UCITS ETF (PRAB GY) has listed on Deutsche Börse Xetra and has been seeded with €5 million in assets under management.

Similar to other Prime-branded ETFs, the fund comes with an expense ratio of just 0.05%.

The ETF’s underlying reference is the Solactive Eurozone Government Bond 0-1 Year Index, which consists of euro-denominated bonds from investment-grade sovereign issuers located in the eurozone.

The index, which is calculated by Frankfurt-based Solactive, includes fixed-rate and zero-coupon securities with remaining maturities between one month and one year and a minimum amount outstanding of €1.5 billion.

Constituents are weighted by market value subject to a 25% cap on any single country.

The fund is the fifth government bond ETF within Amundi’s Prime suite which also includes an ultra-short US dollar product and broad maturity global, euro, and US dollar offerings.

The full Prime suite, which recently surpassed €2bn in assets under management, numbers 13 funds across mainstream equity and fixed income ETFs. The entire range uses physical replication and tracks indices provided by Solactive.

Fannie Wurtz, Head of Amundi ETF, Indexing and Smart Beta, commented, “Our Prime range of ETFs has been a strong success since launching last year, attracting over €2bn in under 18 months.  This latest addition to the product range provides investors with an important core exposure with industry-leading fees.”

Timo Pfeiffer, Chief Markets Officer at Solactive, added, “Amundi’s new Prime Euro Gov Bonds 0-1 Y UCITS ETF gives investors an additional opportunity to effectively park short-term liquidity, and, therefore, to switch between risk-scenarios straightforwardly. Solactive and Amundi both share an uncompromising client-centric approach, resulting in an ETF that enables investors to engage with European government bonds at a fairly low expense ratio. We are looking forward to closer collaborations with Amundi going forward.”

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