Amundi Global Aggregate Green Bond UCITS ETF GBP Hedged Dist

Issuer: Amundi ETF

Asset Class: Fixed Income

TER: 30bps

Trading Currency: GBP

Pays Income: False

Listing Date: 18 Aug 2020

Ticker: KLMG

ISIN: LU1563455630

This investment vehicle offers targeted exposure to the global green bond market, which consists of fixed-income securities specifically issued to fund projects with positive environmental and climate-related benefits. By investing in these bonds, capital is directed towards initiatives such as renewable energy, energy efficiency, sustainable water management, and clean transportation. The portfolio provides a diversified basket of investment-grade green bonds from issuers around the world, including corporations, governments, and supranational entities. This approach allows investors to participate in the financing of a sustainable global economy while seeking the traditional characteristics of fixed-income investments, such as income generation and portfolio diversification.

A key feature of this particular share class is its currency hedging mechanism. It is specifically designed for investors whose home currency is the British Pound. The strategy aims to mitigate the impact of currency fluctuations between the various currencies of the bonds held in the portfolio and the pound sterling. This hedging can reduce a significant source of volatility for investors, providing a return profile that is more directly linked to the performance of the underlying green bonds themselves, rather than being influenced by foreign exchange market movements. It represents a strategic option for those looking to integrate environmental objectives into their portfolios without taking on unintended currency risk.