1 July 2022

Amundi launches short-term corporate green bond fund

French asset manager Amundi has launched a €178 million ($216 million) green bond fund focused on short-term European corporate issues.

The €2 trillion asset manager said the Amundi Euro Corporate Short Term Green Bond fund will only invest in bonds which are aligned with the Green Bond Principles (GBP) administered by the International Capital Market Association (ICMA).

The fund will be co-managed by Amundi senior credit portfolio manager Yaël Muscat, euro credit head Hervé Boiral and responsible investment fixed income head Alban de Faÿ.

"Corporate issuers have been increasingly committed to the fight against climate change," said Amundi fixed income head Amaury d'Orsay. "This has translated into a growing and increasingly diversified green corporate bond market."

The fund "seeks to enable investors [to] protect their portfolio against rising interest rates whilst also seeking to generate a positive impact," he said.

The launch follows rising interest from investors in short-duration green bond funds. For example, NN Investment Partners reported a surge in investor demand for its short-duration green bond fund in 2022 and Axa Investment Managers launched its own short-duration green bond fund in February.