Amundi Index MSCI Emerging Markets SRI PAB UCITS ETF DR (D)

Issuer: Amundi ETF

Asset Class: Equity

TER: 25bps

Trading Currency: GBX

Pays Income: False

Listing Date: 26 Nov 2019

Ticker: MSDG

ISIN: LU2059756754

This fund offers a strategic approach for investors seeking to align their portfolios with global climate objectives while capturing the growth potential of developing economies. It provides exposure to a diversified basket of large and mid-cap companies across various emerging market countries. The investment strategy is centered around tracking an index compliant with the Paris Aligned Benchmark (PAB) framework. This means the portfolio is constructed to achieve a significant reduction in greenhouse gas intensity compared to the broader emerging market universe, specifically targeting a 50% reduction and an additional 7% annual decarbonization trajectory. The methodology involves excluding companies engaged in controversial weapons, tobacco, and fossil fuels, while overweighting companies that are leading the transition to a low-carbon economy.

By investing in this product, individuals can gain access to the dynamic growth of emerging markets through a lens of climate responsibility. It is designed for those who wish to mitigate climate-related risks in their portfolios and contribute positively to the energy transition. The fund's structure ensures that it not only reduces carbon exposure but also actively avoids activities harmful to the environment, such as those impacting biodiversity or involving severe social controversies. This makes it a suitable core holding for investors aiming for long-term capital appreciation while adhering to stringent Environmental, Social, and Governance (ESG) principles, particularly those focused on combating climate change and supporting sustainable development in the world's fastest-growing regions.