Amundi MSCI UK IMI SRI PAB UCITS ETF DR - GBP (C)
| Issuer: Amundi ETF |
| Asset Class: Equity |
| TER: 18bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 13 Dec 2016 |
| Ticker: FT1K |
| ISIN: LU1437025296 |
This fund offers investors a way to access the UK equity market while adhering to strict ethical and environmental standards. It is designed to track an index that incorporates both Socially Responsible Investing (SRI) screens and criteria for a Paris-Aligned Benchmark (PAB). The strategy begins with a broad universe of UK companies across all market capitalizations and applies a series of exclusions. It filters out firms involved in controversial business activities such as weapons, tobacco, gambling, and thermal coal, as well as those with very poor Environmental, Social, and Governance (ESG) ratings, ensuring the portfolio aligns with sustainability-minded values.
The climate-focused aspect is a core component of the investment strategy. By following a Paris-Aligned Benchmark, the portfolio is constructed to significantly reduce its carbon footprint compared to the broader market. It specifically aims for a 50% reduction in greenhouse gas intensity and is committed to an ongoing, self-decarbonization pathway of at least 7% annually. This forward-looking approach helps investors mitigate transition risks associated with climate change and actively supports the global shift towards a low-carbon economy. The fund's direct physical replication method means it holds the actual stocks of the underlying companies.
This product is well-suited for investors seeking a core holding in UK equities who wish to integrate robust sustainability and climate considerations into their portfolio. It provides diversified exposure to the British market while systematically tilting towards companies that demonstrate stronger ESG characteristics and are better aligned with the objectives of the Paris Agreement. The strategy aims to deliver long-term capital growth by investing in businesses deemed more resilient and better positioned for a sustainable economic future.
