Amundi Index Euro Corporate SRI UCITS ETF DR (C)

Issuer: Amundi ETF

Asset Class: Fixed Income

TER: 14bps

Trading Currency: GBX

Pays Income: False

Listing Date: 04 Feb 2020

Ticker: ECRP

ISIN: LU1437018168

This fund provides targeted exposure to the investment-grade, euro-denominated corporate bond market, with a specific focus on integrating Environmental, Social, and Governance (ESG) criteria. The investment objective is to track the performance of a benchmark index that represents a broad universe of fixed-rate corporate bonds, while tilting its composition towards issuers with stronger ESG profiles. This strategy allows investors to maintain core exposure to the European corporate credit market while simultaneously aligning their portfolio with sustainability objectives, favouring companies that demonstrate superior management of ESG-related risks and opportunities.

The underlying index employs a 'tilting' methodology, which means it overweights securities from companies with high ESG ratings and underweights those with lower ratings, rather than applying strict exclusions. This approach ensures broad diversification across various sectors and issuers, mitigating concentration risk while still making a meaningful allocation towards more sustainable companies. The portfolio consists of bonds from a wide range of industries, including financials, consumer goods, and industrials, primarily from developed European nations. As an accumulating share class, all income generated from bond coupons is automatically reinvested back into the fund, which is beneficial for long-term investors seeking to maximize capital growth through compounding.

This financial instrument is well-suited for investors looking for a core fixed-income holding that offers the potential for stable income and capital preservation, characteristic of investment-grade bonds, but with an added layer of ESG screening. It can serve as a foundational block in a diversified portfolio, providing a low-cost and transparent vehicle to access the European corporate debt landscape. The ESG tilt offers a way to potentially enhance risk-adjusted returns by investing in companies that are arguably better positioned for the future, making it an attractive option for conscientious investors aiming to combine financial goals with sustainable values.