Responsible Investment

The journey continues

For Professional Investors only.

Building a more sustainable portfolio

Investment convictions

Outlook: Geopolitical shifts in Europe and the US, particularly with Trump's recent re-election, present both challenges and opportunities for sustainability efforts^[11]. The net zero journey, however, continues and additional efforts will be required to meet decarbonisation targets.

Preferences: We favour frameworks such as the EU’s Climate Transition Benchmark (CTB). We also have a preference for solutions that support environmental initiatives like green bond exposures, which investors could gain through a green-tilted index.

Overall, the net zero journey continues to offer investment opportunities. We believe that transition frameworks are effective at directing capital towards climate solutions while potentially enhancing performance.

We stand firm in our conviction that responsible investment can deliver potential long-term value to our investors. CTB strategies can play the dual role of promoting decarbonisation and financing the green transition. A CTB index with a low tracking error allows investors to add a responsible investment element to their portfolio without compromising on performance and risk/return characteristics versus the parent index.

We believe that transition frameworks are effective at directing capital towards climate solutions

ETF implementation ideas

AMUNDI MSCI WORLD ESG CLIMATE NET ZERO AMBITION CTB UCITS ETF
Management fees: 0.20%*

AMUNDI EURO GOVERNMENT TILTED GREEN BOND UCITS ETF
Management fees: 0.14%*

For investors seeking innovative solutions that fuse sovereign bond investments with responsible investing, a green-tilted euro govies index could be considered. One such index maintains the same risk profile, including duration and country allocation, as a standard euro govies strategy, while offering a 30% exposure to green bonds with similar yields to the parent index.