The new ETFs from Amundi are offered in collaboration with Alliance Bernstein.

Amundi’s ESG ETF range is bolstered with the addition of the Amundi MSCI Emerging ex-China ESG Leaders Select UCITS ETF DR and the Amundi MSCI China ESG Leaders Select UCITS ETF DR, both listed on the London Stock Exchange. (InvestmentWeek)

While one ETF offers ESG equity exposure to Chinese companies, the other fund targets emerging market stocks with an ESG preference. Both are classified as Article 8 under SFDR regulation.

The ongoing charge on each is 0.35%.

The Amundi MSCI Emerging ex-China ESG Leaders Select UCITS ETF DR seeks to replicate as closely as possible the performance of the MSCI EM ex China Region ESG Leaders Select 5% Issuer Capped Index (net total return index), in USD.

The Amundi MSCI China ESG Leaders Select UCITS ETF DR seeks to replicate as closely as possible the performance of the MSCI China ESG Leaders Select 5% Issuer Capped Index (net total return index), in USD.

The funds do not invest in companies involved in controversial activities, including tobacco, weapons and thermal coal. On the other hand, they also select the top 50% of companies in each sector by ESG score.

“We no longer think that China should be considered as an emerging market and a more sophisticated approach is needed to the world’s second-largest economy, which increasingly shares little in common with the emerging markets it is often bucketed with,” said David Hutchins, portfolio manager of multi-asset solutions at AllianceBernstein.

“Integrating consistent ESG considerations into all of our investments within our multi-asset portfolios, including our target date funds widely used by UK DC plans, is fundamentally important to the way we and our clients think,” he added.

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