Amundi Index MSCI EMU SRI PAB UCITS ETF DR (C)

Issuer: Amundi ETF

Asset Class: Equity

TER: 18bps

Trading Currency: GBX

Pays Income: False

Listing Date: 19 Oct 2021

Ticker: SRHE

ISIN: LU2109787635

This investment vehicle offers targeted exposure to the large and mid-cap equity market of the European Monetary Union, but with a sophisticated and rigorous overlay focused on sustainability and climate action. The core strategy is to replicate a benchmark designed to be compliant with the Paris-Aligned Benchmark (PAB) regulations. This means the portfolio is constructed to follow a significant decarbonization trajectory, aiming for a 50% reduction in greenhouse gas intensity compared to the parent universe and a further 7% year-on-year decarbonization. This forward-looking approach ensures the portfolio is aligned with the long-term goal of limiting global warming to 1.5°C, making it a compelling choice for investors committed to financing the climate transition.

Beyond its climate-centric design, the fund incorporates a comprehensive Socially Responsible Investing (SRI) filter. This process systematically excludes companies involved in controversial sectors such as weapons, tobacco, thermal coal, and those violating international norms like the UN Global Compact principles. After these exclusions, the strategy selects the top-performing companies based on their Environmental, Social, and Governance (ESG) ratings, ensuring a "best-in-class" approach. This dual-screening methodology results in a portfolio that not only avoids harmful industries but also actively tilts towards corporate leaders in sustainability.

For the end investor, this fund serves as a core building block for a modern, values-aligned European equity allocation. It provides a diversified exposure to the Eurozone's leading companies while systematically mitigating risks associated with climate change and poor corporate governance. By investing in this product, one can gain access to the potential growth of the European market, while simultaneously contributing to a more sustainable global economy. The accumulating share class structure also means that any dividends are automatically reinvested, facilitating long-term capital growth.