FINANCE - WEALTH MANAGEMENT

Sustainable economy

Quintet invests €200 million in Amundi



Emerging countries remain underinvested in sustainable finance operations. (Photo: Shutterstock)

Emerging countries remain underinvested in sustainable finance operations. (Photo: Shutterstock)

Private bank Quintet and Amundi have formed a partnership aiming to accelerate sustainable investments in emerging markets. Launched in 2020, the Amundi fund invests primarily in green bonds.

Quintet will invest €200m in the Amundi Funds Emerging Markets Green Bond which will be offered as part of its discretionary offering, sealing a strong partnership between the two entities.

Amundi is an open-ended sustainable fund made up of green corporate bonds issued in hard currencies, as well as green sovereign bonds in emerging markets. It is expected to eventually deploy $2bn. The aim of the agreement is to promote sustainable investments in countries where this is often lacking, such as Brazil, China, India and Indonesia. This choice is justified since these countries represent 85% of the world's population, account for more than half of all global carbon emissions and are therefore particularly vulnerable to climate change.

The business agreement with Quintet will see Amundi double its assets under management from €250m at the end of June to more than €450m in the third quarter of 2021. "This partnership is a perfect illustration of our strategy to build long-term relationships through a full range of services with quality private wealth managers," said Thierry Ancona, Head of Third Party Distribution & Wealth Management at Amundi. The Quintet bank continues its commitment to support sustainable economies and now has €85bn of assets under management. James Purcell, Group Head of Sustainable Investment at Quintet, is pleased to say: "We remain firmly convinced that sustainable portfolios are better portfolios, and we reaffirm our commitment to 'sustainability by default', seeking to make a positive impact in the real world without sacrificing performance.

The global green bond market has seen nearly €1 trillion in cumulative issuance since the first fixed income instrument of this type was issued in 2007. €100bn was issued in the first quarter of 2021 alone, a record quarter. According to forecasts by the International Finance Corporation and Amundi, green bonds in emerging markets are expected to double over the next three years compared to the previous three, pushing the market to over $100bn in annual issuance by 2023.

This article was originally published on Paperjam. It has been translated for Delano.