Leading European asset manager Amundi announced today the launch of Amundi Funds Euro Corporate Short Term Green Bond, a new actively-managed fund investing in green bonds issued by corporates whose proceeds are committed to funding environmental and climate-friendly projects.
The fund incorporates both a top-down and bottom-up investment approach and invests in a selection of corporate issuers from sectors including alternative energy and utilities, financials, transport and real estate. It also seeks to offers investors yield potential through corporate debt, while supporting the energy transition.
Green bonds have dominated the sustainable bond market, accounting for over half of the sector’s issuance last year. Global green bond issuance surged past $500 billion in 2021, although volumes have cooled so far this year in the face of growing market and geopolitical pressures.
According to Amundi, all green bonds selected in the portfolio are in line with the Green Bond Principles (GBP), which are voluntary process guidelines for issuing green bonds. The fund also reports annually on the avoided tons of CO2 emissions through the implementation of the financed green projects, and aims to protect investors against the risk of rising rates through the implementation of a dynamic duration management.
Amaury d’Orsay, Head of Fixed Income at Amundi, said:
“Corporate issuers have been increasingly committed to the fight against climate change. This has translated into a growing and increasingly diversified green corporate bond market. Amundi Funds Euro Corporate Short Term Green Bond seeks to enable investors protect their portfolio against rising interest rates whilst also seeking to generate a positive impact.”
The Fund is available within the Amundi Funds flagship Luxembourg SICAV and is registered in Luxembourg, Norway, France, Greece, the Netherlands, Austria, UK, Finland, Sweden, Ireland, Belgium, Germany, Switzerland and Spain.