Amundi Launches Europe's First Low-Carbon Index Funds and ETFs
Amundi has launched three new funds in Europe focusing on low-carbon MSCI indices. The new products aim to reduce carbon emissions and fossil fuel reserves within their investment strategies.
Paris, May 12, 2015 – Amundi, Crédit Agricole's asset management arm, has introduced three new index-based investment products to the European market, targeting investors seeking to reduce their portfolio's carbon footprint. The launch includes two open-ended index funds, Amundi INDEX EQUITY GLOBAL LOW CARBON and Amundi INDEX EQUITY EUROPE LOW CARBON, and one exchange-traded fund (ETF), Amundi ETF MSCI WORLD LOW CARBON UCITS ETF.
These new funds track the MSCI Low Carbon Leaders strategy indices, developed by MSCI in collaboration with Amundi and two major European pension funds. The indices aim to reduce carbon emissions by a minimum of 50% compared to their respective parent indices, MSCI World and MSCI Europe. This reduction encompasses both current emissions and reserves representing future potential emissions.
The strategy indices achieve these emission reductions by excluding a portion of securities from the investment universe based on companies' carbon intensity (carbon emissions relative to turnover) and their fossil fuel reserves. However, the goal is to maintain a sector and geographical composition similar to the parent indices.
Amundi reports significant investor interest in combining carbon footprint reduction with low tracking error relative to standard indices. The company aims to meet client needs in managing financial risks associated with climate change by offering accessible investment solutions. The new funds' ongoing charges range from 0.09% to 0.60%, with the ETF's expense ratio at 0.25 basis points.