ETF, Index & Smart Beta ESG

Amundi provides investors with first ESG ETF on Italian blue chips

Milano, Metropolitan City of Milan, Italy, July 21, 2022 by Amundi

Amundi, Europe’s largest asset manager, and the leading European ETF provider^[1], confirms its commitment to facilitate investors’ shift towards responsible investing by transitioning an additional ETF on a flagship equity index into an ESG equivalent.

Indeed, the Amundi FTSE MIB UCITS ETF recently became the Amundi Italy MIB ESG – UCITS ETF DR^[2] and it is now the first ETF tracking the newly created MIB ESG index, developed by Euronext.

The index tracked by the ETF offers exposure to the 40 main Italian stocks which demonstrate strong Environmental, Social and Governance practices among the 60 most liquid Italian companies listed on the Italian Stock Exchange.

It applies norm-based exclusion filters in accordance with the United Nation (UN) Global Compact principles and a negative screening allows to exclude companies involved in controversial business practices^[3]. The ETF also aims to deliver an improved weighted carbon intensity compared to its investible universe.

Arnaud Llinas, Head of ETF, Indexing & Smart Beta at Amundi, said: “Responsible investing is at the heart of Amundi’s ETF product development strategy, this is why we are delighted to partner again with Euronext and accompany investors in the reorientation of capital towards sustainable portfolios. We believe that issuing ESG equivalent of national blue chip indices is also instrumental to help democratize ESG investing”.

Fabrizio Testa, CEO, Borsa Italiana, part of Euronext Group, added: “Following the launch of the MIB ESG last October, Euronext is glad that Amundi decides to launch the Amundi Italy MIB ESG – UCITS ETF DR. This is further evidence of strong market appetite for solutions that enable the integration of ESG considerations into core investment portfolios. We look forward to continuing to collaborate with our clients in developing products supporting this ESG transition, in line with our ‘Fit for 1.5°’ commitment".

The ETF is classified under article 8 of the EU’s SFDR regulation^[4] and is offered with competitive ongoing charges of 0.18%^[5].

This initiative is part of the Societal Project of the Crédit Agricole Group and its commitment to the climate.

Footnotes

1. Source: Amundi, as at 31/03/2022.
2. The underlying index and name change was effective on 20/06/2022.
3. The index composition is based on the ESG criteria analysis by Vigeo Eiris, a Moody’s ESG Solutions company. Sector exclusions include tobacco, thermal coal mining, tar sands and oil shales, civilian firearms and controversial weapons. Further details on the investment policy are available on the index provider website.
4. SFDR: “Sustainable Finance Disclosure Regulation” – 2019/2088/EU. European Union regulation that requires, amongst other things, the classification of financial products according to their ESG intensity. A fund is referred to as “Article 8” if it promotes ESG characteristics in tandem with other financial objectives, or “Article 9” when it has a sustainable investment objective. Any fund that does not comply with the two previous categories is an “Article 6” fund.
5. Ongoing charges - annual, all taxes included. The ongoing charges represent the charges taken from the fund over a year. Until the fund has closed its accounts for the first time, the ongoing charges are estimated. Transaction cost and commissions may occur when trading ETFs.