Amundi Global Aggregate Green Bond 1-10Y UCITS ETF Acc
| Issuer: Amundi ETF |
| Asset Class: Fixed Income |
| TER: 15bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 08 Dec 2020 |
| Ticker: XCO2 |
| ISIN: LU1981859819 |
This financial instrument offers an actively managed approach to the global fixed income market, with the dual objective of providing both income and capital growth. It is designed as a core bond holding, leveraging a flexible and unconstrained strategy to navigate the complexities of global debt. The fund invests in a diversified portfolio of debt and debt-related instruments from issuers located anywhere in the world, denominated in any currency. This broad mandate allows the portfolio manager to seek out the most attractive opportunities across different market cycles and economic environments.
The investment universe is extensive, encompassing government bonds, corporate bonds, mortgage-backed securities (MBS), and asset-backed securities (ABS). The strategy has the flexibility to invest in both investment-grade and high-yield securities, allowing for tactical shifts in credit quality based on the manager's assessment of risk and reward. A key characteristic is its management of interest rate risk, with the portfolio's overall modified duration maintained between one and ten years. As an actively managed fund that does not reference a benchmark, it provides the manager with significant freedom to construct a portfolio based on conviction and fundamental analysis.
This product is suitable for investors seeking a comprehensive, professionally managed solution for their fixed income allocation. By delegating asset allocation decisions within the global bond space to an active manager, investors can gain access to a dynamic strategy that aims to adapt to changing interest rate expectations, credit conditions, and geopolitical events. It provides a diversified source of potential returns and income, distinct from passive index-tracking bond funds, making it a potentially valuable component in a well-rounded portfolio.
