Amundi launches its first emerging balanced sub-fund
Amundi has launched its first emerging balanced sub-fund: Amundi Funds Multi Asset Emerging Markets, a sub-fund of the Luxembourg SICAV Amundi Funds which is UCITS IV-compliant.
Invested mainly in direct securities, it offers investors a global investment solution, enabling them to benefit from the growth potential of emerging economies. The sub-fund, which may not be for sale in all markets, aims to outperform its reference indicator (60% MSCI Emerging markets and 40% JPM EMBI Global Diversified) over a minimum investment horizon of five years while striving to maintain volatility lower than that of the index.
With a higher growth rate than developing countries, emerging markets are driving global growth and offer attractive investment opportunities, both for equities and bonds.
Although this trend looks set to continue in the years ahead, these markets are still under-represented compared to their weight in the global economy. Marie-Aude Laurent, the fund manager of Amundi Funds Multi Asset Emerging Markets, notes local debt markets in emerging countries have started to expand to meet growing needs for financing.
She adds: “The market share of emerging equities, which are hardly represented in global indices, will grow as these economies become more sophisticated.”
The fund has a flexible and active management strategy to make the most of the momentum in the equity and bond markets as well as of the low correlation between these two asset classes.
The investment process is in three steps: Definition of the macroeconomic scenario, followed by financial markets analysis and then bond/equity allocation taking into account bottom-up factors for equities and momentum for bonds.
The proportion of the equity and bond pockets in the portfolio varies significantly, ranging from 20% to 80%, thus providing great flexibility. These levels make it possible to benefit from market upturns while limiting the impact of downturns. Laurent adds: “We can modify the asset allocation quickly depending on market configurations.”
This portfolio is managed by three specialists with complementary profiles. An experienced asset allocation manager is responsible for the global and tactical allocation. He entrusts management of the emerging equity and bond pockets to fund managers specialising in these asset classes, enabling him to analyse the markets from different perspectives.
With more than €18.3bn in assets under management and 67 sub-funds at end December 2012, Amundi Funds is a Luxembourg SICAV with a comprehensive range of sub-funds. It is registered for distribution in 28 countries, although some of these may only be for private placements or domestic pension funds.