Amundi, Europe's largest asset manager, announces the launch of Amundi Funds Emerging Markets Green Bond, 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 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 $240bn.
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."
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.
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.
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."