AMUNDI S&P WORLD FINANCIALS SCREENED UCITS ETF

Issuer: Amundi

Asset Class: Equity

TER: 25

Trading Currency: GBP

Pays Income: False

Listing Date: 24 Mar 2026

Ticker: GLFI

ISIN: IE000KYX7IP4

This investment vehicle is designed to provide focused exposure to the global financials sector by closely tracking the performance of the S&P Developed Ex-Korea LargeMidCap Financials & Real Estate Capped 35/20 Screened Index. It offers a convenient and cost-effective way to invest in a diversified basket of large and mid-capitalisation financial companies from developed countries around the world. The strategy incorporates specific environmental, social, and governance (ESG) criteria by applying screens that exclude companies involved in controversial activities such as controversial weapons, tobacco, and thermal coal, as well as those not compliant with the UN Global Compact principles. This screening process aims to align the portfolio with the values of socially conscious investors while targeting the financial industry's core drivers.

The portfolio is constructed using a physical replication method, meaning it directly holds the shares of the companies in the benchmark index. This provides investors with direct ownership of the underlying assets. The holdings are diversified across various sub-sectors within the financial industry, including banking, insurance, capital markets, and real estate. To mitigate concentration risk, the index applies a capping rule, ensuring that no single company exceeds 35% of the index weight, and the aggregate weight of all companies exceeding 5% is capped at 20%. This structural feature helps to maintain a balanced exposure across the sector's largest constituents, preventing a few dominant players from disproportionately influencing the fund's performance.

This instrument serves as a strategic tool for investors seeking to make a tactical allocation to the financials sector. Given the sector's cyclical nature, it may appeal to those with a positive outlook on the global economy, as financial firms often benefit from economic expansion and rising interest rate environments. It can be used to complement a core diversified portfolio, allowing for an overweight position in a sector that is fundamental to the functioning of modern economies. However, as a sector-specific investment, it carries a higher level of risk compared to broad market indices and is best suited for investors with a moderate to high risk tolerance and a clear view on the future prospects of the global financial industry.