Amundi Asset Management has launched the Amundi Global Corporate SRI 1-5Y Highest Rated UCITS ETF, a sustainability product, with an initial investment from the Fondo Latinoamericano de Reservas (FLAR – the Latin American Reserve Fund).
The fund replicates the Bloomberg MSCI Global Corporate A+ ESG Sustainability SRI 1-5 Year Index. This ETF offers exposure to the global corporate developed universe. To be included, corporate credit issuers must be “highest rated” with a minimum credit rating of A- and an MSCI ESG Rating of BBB or higher. The methodology also applies other ESG-related exclusions.
Amundi codesigned the ETF in partnership with FLAR, with the aim of helping central banks achieve their responsible investment objectives. The fund targets these objectives combined with low tracking error. Additionally, investment grade corporate bonds have high eligibility particularly among institutional clients and should be well suited to the responsible investment approach, Amundi stated.
Fidel Jaramillo, secretary general at FLAR said: "Our commitment to sustainable investments is reflected in our continuous efforts to align with industry best practices and regional cooperation. By collaborating with our peers in the region and the industry, we are dedicated to driving forward responsible investment strategies that promote transparency, diversification, and performance. In this very valuable collaboration with Amundi, FLAR has taken the initiative to become the seed investor in this ESG-oriented ETF, addressing critical market gaps and championing responsible investing. By doing so, FLAR contributes to the creation of a public good for the central bank community".
Gaëtan Delculee, global head of Digital Distribution and ETF Sales at Amundi said: "Our collaboration with FLAR showcases our client-centric approach and ability to leverage our ETF expertise and leadership in responsible investing to accompany institutions in their ESG journey. We believe Central Banks have a key role in shaping sustainable frameworks and we are proud to partner with FLAR to develop an innovative ESG solution adapted to their needs".
The Andean Reserve Fund (FAR) was created in 1978 as a Regional Financing Arrangement (RFA), in response to the needs of Bolivia, Colombia, Ecuador, Peru and Venezuela to have their own financial institution, to address the problems resulting from the imbalances in the external sector of their economies and to facilitate the regional integration process. It became the second oldest RFA in the world. In 1989, based on the solid foundations of a fully operating body, FAR became the Latin American Reserve Fund (FLAR) due to the interest of the Andean countries in expanding the Andean Reserve Fund (FAR) to all Latin America. Costa Rica, Uruguay and Paraguay joined as FLAR member countries in 2001, 2008 and 2015 respectively, and in 2022 the Central Bank of Chile became a FLAR member as an Associate Central Bank.
