Amundi Index MSCI Europe SRI PAB UCITS ETF DR (C)
| Issuer: Amundi ETF |
| Asset Class: Equity |
| TER: 18bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 01 Oct 2019 |
| Ticker: ESRG |
| ISIN: LU1861137484 |
This investment vehicle offers targeted exposure to the European equity market with a strong emphasis on sustainability and climate action. It is designed to track a benchmark composed of large and mid-capitalization companies across developed European countries. The selection process for the underlying index is rigorous, starting with the parent universe of European stocks and applying a multi-layered screening process. Companies are first evaluated based on their Environmental, Social, and Governance (ESG) performance, retaining only those that meet high sustainability standards. This Socially Responsible Investing (SRI) approach ensures that the portfolio is aligned with ethical and sustainable principles.
A key feature of this fund is its alignment with the goals of the Paris Agreement. The underlying index is classified as an EU Paris-Aligned Benchmark (PAB), meaning it follows a specific decarbonization trajectory. This involves significantly reducing the portfolio's carbon footprint compared to the broader market and excluding companies involved in controversial activities or those with significant exposure to fossil fuels. The methodology aims for a self-decarbonization of at least 7% on average per annum. This dual focus on both broad ESG criteria and specific climate objectives makes it suitable for investors looking to build a core European equity holding that actively contributes to the transition towards a lower-carbon economy.
The fund employs a physical replication strategy, meaning it holds the actual shares of the companies in the index, which provides transparency and reduces counterparty risk. By investing in this product, individuals gain access to a diversified portfolio of leading European companies that are not only financially sound but are also leaders in corporate sustainability. The accumulating share class structure means that any dividends paid by the constituent companies are automatically reinvested back into the fund, fostering the potential for compound growth over the long term.
