Amundi – Best Fixed Income (excluding cash) ETF Manager
Amundi is one of Europe’s leading ETF providers, with a range of 100 products within equities and fixed income. Through 2014, it had more than USD18bn of ETF assets under management, of which more than USD4bn was in fixed income ETFs.
“Amundi’s ETF range is on average about 25 per cent cheaper1 than the European competition and our fixed income range is particularly competitive in terms of fees2. Amundi is a leading asset manager in Europe with around USD1trn assets under management, which gives us good pricing power that we can apply to our investors. Offering well-priced ETFs is an integral part of our offering,” comments Fannie Wurtz (pictured), Global Head of ETF & Indexing Sales at Amundi.
Innovation is a well-worn adjective within the ETF universe, but it is fully justified at Amundi where the focus is on delivering a complete toolset of fixed income products to help its investors in different market conditions, providing them with opportunities to invest across the yield curve.
This was evidenced last year with the introduction of two new ETFs. Last June a short maturity version of the Amundi ETF Govt Bond Lowest Rated EuroMTS Investment Grade UCITS ETF – Amundi Govt Bond Lowest Rated EuroMTS Investment Grade 1-3 UCITS ETF– was launched.
“We are pleased with the success this ETF has enjoyed since its launch: in the first two months of this year we’ve seen strong inflows and the fund’s asset have reached now close to USD64m,” confirms Fannie Wurtz. The flagship product launched in 2010, has now more than USD1.6bn in AUM.
The FTSE MTS Lowest-Rated Eurozone Government Bond IG 1-3Y Index is reviewed on a monthly basis and is composed of government bonds issued by Eurozone member states meeting specific criteria, notably ratings at least two lower than AAA (or equivalent rating from S&P, Moody’s, and Fitch) and a maturity of 1-3 years.
Last September saw the introduction of the Amundi ETF Floating Rate Euro Corporate 1-3 UCITS ETF, another short duration product but with a focus on corporate, rather than government bonds.
This ETF tracks as closely as possible the performance of the Markit iBoxx EUR FRN IG 1-3 Index, and as Wurtz points out: “We are the first ETF provider in Europe, at launch date, to offer such a product”.
“This ETF has a low degree of price sensitivity and a yield which is less negatively impacted by the rise in rates than fixed rate bonds. This can help protect investors against potential rate moves and illustrates how we are trying to position ourselves within the ETF market and demonstrate real innovation,” says Wurtz.
“We are delighted to receive this award,” Wurtz comments. “Which demonstrates that etfexpress’s readership recognises the quality of Amundi’s fixed income range. We have a strong commitment at meeting investors’ needs by offering cost-effective, innovative products and we keep developing an extended range of both Fixed income and Equity ETFs always maintaining an high quality of replication.“
1. Source: Amundi ETF comparing the average asset-weighted Total Expense Ratios (TERs) of all Amundi ETF Funds versus that of all European ETFs (incl. the Funds) as stated in Deutsche Bank’s Europe Monthly ETF Market Review of 31/01/2015. Important: some individual Funds may not be cheaper than their European peers or may not have an equivalent European peer group to compare with and vice-versa. The TER corresponds to the ongoing charges disclosed in the key investor information document. Analysis excludes third party commissions/costs incurred directly by investors when trading.
2. Transaction costs and commissions may occur when trading ETFs.
This material is directed at professional clients only for the purposes of the Financial Conduct Authority’s Conduct of Business Sourcebook only and must not be relied upon by any other persons.
The full methodology of the construction of the ETF are available on mtsindices.com. and indices.markit.com
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Disclaimer MARKIT iBOXX index
Markit iBoxx®, Markit iBoxx Indexes are marks of International Index Company Limited and have been licensed for use by Amundi.
Markit iBoxx Indexes are the property of International Index Company Limited and are used under license. The Fund is not sponsored, endorsed, or promoted by International Index Company Limited.
The Markit iBoxx Indexes are the property of International Index Company Limited (“Index Sponsor”) and has been licensed for use in connection with this Fund.