Amundi has expanded its suite of socially responsible fixed income ETFs with the addition of a multi-currency global aggregate bond fund.
Amundi has added a global aggregate bond ETF to its suite of ESG-tailored fixed income products.
The Amundi Global AGG SRI UCITS ETF has been listed on Deutsche Börse Xetra in euros (8OUU GY) and US dollars (8OUV GY).
The fund is linked to the Bloomberg MSCI Global Aggregate 500MM ex Securitized Sustainable SRI Sector Neutral Index which consists of fixed-rate, investment-grade bonds from Treasury, government-related, and corporate issuers worldwide.
The index includes bonds denominated in a broad range of currencies as long as they satisfy minimum par amount outstanding thresholds and have at least one year remaining until maturity.
The methodology screens out issuers embroiled in severe ESG-related controversies as well as those with notable business operations linked to adult entertainment, alcohol, gambling, tobacco, weapons, nuclear power, thermal coal, fossil fuels, and genetically modified organisms.
The remaining issuers are assigned ESG scores based on an analysis conducted by MSCI ESG Research. Issuers must have a rating of BBB (average) or higher to remain in the index.
Constituents are weighted by market value outstanding while setting the weights of the Treasury, government-related, and corporate sectors to match those of the parent universe.
The ETF comes with an expense ratio of 0.14%.