15.02.2021

Amundi announces the launch of Amundi Funds Emerging Markets Green Bond

Amundi, Europe’s largest asset manager, announces the launch of Amundi Funds Emerging Markets Green Bond (“the Fund”), an emerging markets green bond strategy open to international institutional and retail investors. This follows the successful launch and close of Amundi Planet Emerging Green One (“AP EGO”)1 in 2018, the world’s largest targeted green bond fund dedicated to emerging markets. The open-ended fund is managed by Amundi’s Emerging Markets team, who have a track record of managing emerging markets debt and FX since 1999, as well as experience in ESG integration and managing climate solutions on behalf of the world’s largest investors.

 

The Fund is invested in Green Bonds issued in hard currency primarily by corporates as well as some exposure to sovereigns in selected emerging markets, such as Brazil, India, China, and Indonesia. The Fund seeks to take advantage of the growth in green bonds, which saw a record $52 billion of issuance in 2019, with total issuances reaching $240 billion.2 By making green bonds more widely available to investors worldwide, additional private capital can be mobilised for the energy transition, helping emerging countries mitigate the adverse effects of climate change risks. As reported in the Amundi/IFC Emerging Market Green Bonds Report 2019, preparedness for climate shocks can help economies become more resilient to other global shocks, such as the current health crisis.  

 

Investment approach

The strategy is an actively managed solution incorporating both a top-down and bottom-up investment approach. Benefiting from the Emerging Markets Credit Research and ESG Analysis teams’ comprehensive issuer-level analysis, the Fund invests in a selection of corporate issuers from a range of sectors including alternative energy sources and utilities, financials, transport, and real estate. The strategy seeks attractive risk-reward opportunities within both investment grade and high yield segments of the investment universe.

The Fund is managed by Maxim Vydrine, Co-Head of Emerging Markets Corporate & High Yield Debt at Amundi, as a Lead portfolio manager, supported by Sergei Strigo and Paolo Cei as Co-portfolio managers.

 

Responsible investment at the heart of the Fund’s approach

As a pioneer in responsible investing, Amundi manages over €378 billion in responsible investment assets with over 10000 issuers rated with respect to ESG criteria3. Amundi’s recognised ESG analysis process will be fully integrated to the investment approach of the Fund. This will seek to offer investors an attractive yield potential through emerging market debt, while supporting the energy transition in countries where it is most needed. The Fund is aligned to the Green Bond Principles4 and will assess the environmental impact of the green bonds held at year-end. The Fund will publish an annual impact report to demonstrate how Amundi screens issuers in order to make sure that the outlined ESG criteria are met.

 

 

Yerlan Syzdykov, Head of Emerging Markets at Amundi, said: “Investors are increasingly looking for solutions that deliver yield and have a positive impact on the environment. Emerging market green bonds are particularly well suited to capturing both of these opportunities.  We have already seen that 2019 was a vintage year for the global green bond market, and emerging market green bonds in particular are growing rapidly. We are proud to leverage Amundi’s recognised EM expertise to offer investors the opportunity to gain exposure to green projects while contributing towards a tangible and sustainable impact on the environment.”

 

The Fund is available within the Amundi Funds flagship Luxembourg SICAV and is currently registered in Austria, Belgium, Denmark, Switzerland, Germany, Spain, Finland, France, UK, Italy (institutional investors), Luxembourg, Netherlands, Norway, and Sweden.5

 


1Alternative Investment Fund (AIF)

2 To access the full 2019 emerging green bonds report in collaboration with the World Bank’s IFC, please visit: https://research-center.amundi.com/page/Expert-Talk/2020/05/Emerging-Market-Green-Bonds-Report-2019. The emerging green bonds report for 2020 will be available on Amundi’s Research Centre in May 2021

3 Amundi data as of 31/12/2020

4 https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/

5 Please see the Prospectus and the Key Investor Information Document (KIID) for further information.

 

For professional investors

This document is issued by Amundi Asset Management S.A.S and is not intended for any citizens or residents of the United States of America or any “U.S. Person”, as defined in the Prospectus of Amundi Funds Emerging Markets Green Bond (the “Fund”). The Fund is a UCITS SICAV established under the laws of Luxembourg and subject to the supervision by the Commission de Surveillance du Secteur Financier. Amundi Asset Management is a portfolio management company authorised by the Authorité des Marchés Financiers in France under number GP-04000036. The content of this advertisement is for information purposes only and does not constitute a recommendation to buy or sell. Past performance is not a guarantee or indication of future results. Investment return and the principal value of an investment in the Fund may go up or down and may result in the loss of the amount originally invested. All investors should seek professional advice prior to any investment decision, in order to determine the risks associated with the investment and its suitability. Subscriptions in the Fund will only be acceptable on the basis of its latest prospectus and/or KIID, which may be obtained free of charge at www.amundi.lu

Amundi, the leading European asset manager, ranking among the top 10 global players6, offers its 100 million clients – retail investors, institutional investors and companies – a complete range of savings and investment solutions in active and passive management, in traditional or real assets.

With its six international investment hubs7, financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.

Amundi clients benefit from the expertise and advice of 4,500 employees in nearly 40 countries. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages over €1.7 trillion in assets8.

Amundi Emerging Markets offers a unique 360° approach based on the combination of Fixed Income and Equity teams to identify and capture the best investment opportunities. Its cross-asset capability is grounded in financial and extra-financial research. As the third largest European Emerging Markets platform9, Amundi manages €43.5bn of assets8.

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Source: IPE “Top 500 Asset Managers”, published in June 2020, based on AuM at 31/12/2019.

7 Boston, Dublin, London, Milan, Paris and Tokyo

 Amundi data as of 31/12/2020

9 Broadridge at 30/09/2020

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