AMUNDI CORE EUR CORPORATE BOND ETF GBP

Issuer: Amundi ETF

Asset Class: Fixed Income

TER: 9bps

Trading Currency: GBP

Pays Income: False

Listing Date: 21 Mar 2025

Ticker: CBDG

ISIN: LU2977997209

This fund is designed to provide investors with a core holding in the European corporate debt market. Its primary objective is to replicate the performance of the Bloomberg Euro Corporate Bond Index, offering exposure to a diversified portfolio of fixed-rate, investment-grade corporate bonds denominated in the Euro. By utilising a physical replication strategy, the fund directly purchases the constituent bonds of the index, ensuring a high degree of tracking accuracy. As part of a 'Core' series, it is positioned as a foundational, low-cost building block for constructing a well-diversified investment portfolio, suitable for those seeking stable, long-term exposure to this specific asset class. The fund's capitalising structure means that any income generated from the bonds is automatically reinvested, fostering potential for compound growth over time.

A crucial feature of this particular share class is its currency-hedged nature. It is specifically tailored for investors whose home currency is the British Pound but who wish to invest in Euro-denominated assets. The hedging mechanism aims to mitigate the volatility arising from fluctuations in the EUR/GBP exchange rate, thereby isolating the investment's performance to the underlying bond market's returns. The portfolio is spread across various sectors, such as financials, industrials, and utilities, and includes issuers from multiple countries within the Eurozone. This diversification, combined with the focus on high-quality, investment-grade credit, makes the instrument an appropriate choice for investors aiming to add a defensive component to their portfolio, balance higher-risk assets, or gain straightforward access to the European corporate bond landscape without taking on direct currency risk.