Europe’s largest asset manager Amundi has launched the Asia Income ESG Bond Fund, classified as SFDR Article 8. It will aim to mitigate ESG risks and will measure and monitor the portfolio’s carbon intensity per euro million of sales and ensure the amount remains below the investment universe average. The fund will invest across all Asian fixed income segments with a focus on both credit and local rates markets. Yerlan Syzdykov, Head of Emerging Markets at Amundi, said: “Emerging markets are expected to grow faster than developed markets, with Asia taking the lion’s share of this growth. As we navigate this ongoing market regime shift to a higher rate environment, the increased volatility and uneven repricings offer what we believe to be great investment opportunities for active and flexible asset managers like Amundi. 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.” According to Amundi, the fund seeks to capture a wide range of investment opportunities by maintaining a minimum extra financial analysis coverage of 90%, as well as a minimum allocation to sustainability bonds.
