The Central Bank of Uruguay has begun investing part of its foreign reserves in a fixed-income exchange-traded fund (ETF) structured around Socially Responsible Investing (SRI) criteria, with an allocation of around USD 100 million. Managed by Amundi and developed by the Latin American Reserve Fund in consultation with several central banks, the ETF invests in instruments issued by entities that meet ethical, social and environmental standards. For the central bank’s reserve portfolio, the investment is positioned as a diversification tool with lower correlation to other eligible assets, intermediate interest-rate risk and relatively low global credit risk; underlying instruments may have a maximum maturity of five years and a minimum rating of A- or equivalent. The central bank indicated it will continue exploring opportunities to further integrate SRI considerations into reserve investment decisions, building on earlier steps including joining the Network for Greening the Financial System in December 2020 and investing in an environmentally oriented fund managed by the Bank for International Settlements in 2021.
Central Bank of Uruguay 2025-05-09
Central Bank of Uruguay invests around USD 100 million of reserves in a socially responsible fixed-income ETF
The Central Bank of Uruguay is investing USD 100 million of its foreign reserves in a fixed-income ETF focused on Socially Responsible Investing (SRI) criteria. Managed by Amundi and developed by the Latin American Reserve Fund, the ETF targets instruments with ethical, social, and environmental standards. This investment serves as a diversification tool with intermediate interest-rate risk and low global credit risk, and the central bank plans to further integrate SRI considerations into its reserve strategies.