Amundi expands its Buy & Watch fund range with the launch of a bonds strategy designed to offer investors with an income objective through an annual coupon.
Amundi Fund Solutions SICAV offers a well-diversified portfolio of bonds selected and managed by a team of highly experienced credit specialists with the aim of delivering an income objective over a defined maturity of six years with an estimated target annual coupon.
The fund will predominantly invest in investment grade credit securities with maturity or call dates aligned with the fund maturity. Using a fundamental driven, bottom-up, conservative approach, the portfolio management team will select a wide range of global credit issuance from all sectors in developed and emerging markets, in a range of currencies mainly in Euros, but also US dollar and UK sterling, and using the complete array of credit ratings. The ratings will be weighted at around 70% for investment grade and around 30% for high yield, with an average rating of BBB-.
Investors can subscribe to the fund over a period of nine weeks, after which it is recommended to remain invested in the fund for the prescribed period to the target maturity date of June 2025.
Jean-Marie Dumas, head of Fixed Income Solutions, Amundi says: "In a world of persistently low interest rates, investors are looking for new ways to get attractive returns on their investments. Target maturity Buy and Watch solutions offer a good alternative to traditional bond funds by capturing attractive risk premia and providing visibility into the future rate of return for a given time horizon."
The fund is a Luxembourg SICAV that will be registered in various European countries including Czech Republic, Slovakia, Germany, Spain, Austria, Finland, the Netherlands, Hungary.