Amundi Global Corp SRI 1-5Y UCITS ETF DR - HEDGED GBP (C)

Issuer: Amundi ETF

Asset Class: Fixed Income

TER: 15bps

Trading Currency: GBX

Pays Income: False

Listing Date: 23 Nov 2021

Ticker: GCSG

ISIN: LU2382233182

This investment vehicle offers exposure to the short-term global corporate bond market, specifically targeting investment-grade debt with maturities between one and five years. By focusing on this segment of the yield curve, the fund aims to provide a degree of stability and reduce sensitivity to interest rate fluctuations compared to longer-duration bond funds. This makes it a potentially suitable option for investors seeking a core fixed-income holding that can generate income while managing volatility, particularly in an environment of uncertain interest rate movements. The strategy provides diversification across numerous countries and sectors, with a significant allocation to North American and European corporate issuers.

A key feature of this fund is its integration of Environmental, Social, and Governance (ESG) criteria into the investment process. It tracks an index that applies a robust sustainability and socially responsible investing (SRI) screen, excluding companies involved in controversial activities and favouring those with strong ESG profiles. This approach caters to investors who wish to align their portfolios with their values without sacrificing broad market exposure. Furthermore, this specific share class is currency-hedged, which is a critical attribute for investors whose home currency is not the same as the underlying assets. This hedging mechanism is designed to minimize the impact of foreign exchange rate movements on investment returns, thereby isolating the performance of the underlying bond portfolio.