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Amundi
European asset manager Amundi, a subsidiary of the Crédit Agricole group, has launched Amundi Funds – Asia Income ESG Bond. The fund invests across all Asian fixed income segments, with a focus on both credit and local rates markets.

Diversified across corporates and sovereign issuers, the fund will target high income generation with an optimised risk return profile, the firm said in a statement. It will also use a strong ESG framework to reduce extra-financial risk while seeking ESG opportunities. It is classified under article 8 of the EU’s Sustainable Finance Disclosure Regulation (SFDR). 

The fund will invest in a diversified investment universe across local and external debt, using active currency management. The Asian bond universe comprises 10+ sovereign and quasi-sovereign issuers and over 500 corporates across 15 countries. It will be managed by Joevin Teo, head of Asian fixed income and the emerging market debt team. 

Amundi believes that Asia is one of the most dynamic regions offering a number of investment opportunities, in a diversified and maturing market. There is a shift in the investment focus from the West to the East, which Amundi believes will drive foreign investment flows across the region and higher yield potential than developed markets corporate bonds. Asia’s share of world GDP has increased to almost 30 per cent, from under 10 per cent in the early 2000s, the firm added.  

ESG considerations 
The fund aims to mitigate ESG risks and capture a range of investment opportunities by maintaining a minimum extra financial analysis coverage of 90 per cent, as well as a minimum allocation to green, social, and sustainability (GSS+) bonds, the firm continued.

“Emerging markets are expected to grow faster than developed markets, with Asia taking the lion’s share of this growth. With a growing demand for green and social bonds in the region, the appeal for Asian bonds is strong and we are delighted to offer investors in Europe and Asia access to this maturing and increasingly diversified market,” Yerlan Syzdykov, head of emerging markets at Amundi, said. 

The sub-funds are available within the Amundi Funds SICAV and are registered in Austria, Belgium, France, Hong Kong, Germany, Italy, Luxembourg, the Netherlands, Spain, Singapore, and the United Kingdom. 

On a related front, this news service has opened nominations for the third annual Wealth For Good Awards 2024.