Innovation

	https://www.next-finance.net/en
	Innovation

Amundi ETF continues to innovate with the first ETF in Europe1 exposed to Floating Rate Notes

AMUNDI ETF FLOATING RATE EURO CORPORATE 1-3 UCITS ETF has been listed by Amundi in September 2014 on Euronext Paris and has been registered with the Financial Conduct Authority on December 2nd 2014. Further cross registrations and listings are foreseen in the weeks to come in other European countries.

Article also available in : English | français

AMUNDI ETF FLOATING RATE EURO CORPORATE 1-3 UCITS ETF has been listed by Amundi in September 2014 on Euronext Paris and has been registered with the Financial Conduct Authority on December 2nd 2014. Further cross registrations and listings are foreseen in the weeks to come in other European countries.

This ETF is a unique product in Europe [1], providing exposure to Floating Rate Notes: it tracks the performance of the Markit iBoxx EUR FRN IG 1-3 index [2](total return), i.e. coupons re-invested, as calculated and published by index provider Markit Indices Limited, as closely as possible, whether it is rising or falling. Bonds in the index are drawn from a universe of investment grade euro-denominated floating rate bonds issued by corporates, with a maturity of 1 to 3 years.

With interest rates at historic lows, this innovative product offers a solution for insulating portfolios from interest rate moves. With a coupon that changes in line with interest rates, Floating Rate Notes have a low degree of price sensitivity and a yield which is less negatively impacted by a rise in rates than fixed-rate bonds.

The AMUNDI ETF FLOATING RATE EURO CORPORATE 1-3 UCITS ETF is offered with a TER [3] of only 0.18%.

Valérie Baudson, Global Head of ETF and Indexing at Amundi, commented: “We are delighted to offer investors a unique exposure in Europe to the Floating Rate Notes universe. This new ETF offers a new allocation brick for European bonds and once again demonstrates our commitment to innovation, which is at the core of our competitively-priced product development.”

Next Finance , January 2015

Article also available in : English | français

Footnotes

[1] At launch date

[2] For further information on the index methodology please refer to www.markit.com

[3] TER: Total Expense Ratio or maximum ongoing charges - annual, all taxes included. For Amundi ETF funds, the ongoing charges correspond to the Total Expense Ratio. The ongoing charges represent the charges taken from the fund over a year. When the fund has not closed its accounts for the first time, the ongoing charges are estimated. The TER is a measure that compares the annual total management and operating costs (all taxes included) charged to a fund against the value of that fund’s assets. The TER corresponds to the ongoing charges disclosed in the KIID.

Add a new comment

ETF / Index

Amundi

Viadeo

Add a new comment

Focus

Innovation Ossiam ETF on the Risk Weighted Enhanced Commodity Ex Grains TR Index

Using its expertise in systematic asset management, in 2013, Ossiam has set up an ETF offering a long only exposure to a risk weighted enhanced commodity index, based on S&P Goldman Sachs Commodity Index constituents, excluding (...)