Paris-headquartered asset management group Amundi has launched a new type of multi-asset structured strategy that has a permanent 90% daily capital protection.
This fund aims to achieve moderate growth through an actively managed portfolio relying on fundamental market analysis and convictions’ investments.
The fund management team can invest in all asset classes independently of sectors and industries, issuers, geographical areas and currencies.
Amundi said in a statement announcing the launch that the fund invests in riskier assets such as equities and corporate bonds when markets conditions follow an upward trend and that the fund shifts towards less risky assets, including government bonds and money market instruments, when negative trends are perceived in the markets.
The fund targets primarily investors looking for returns through financial market investment but who do not have the appetite for the associated risks.
Amundi has integrated what it calls a partial permanent capital guarantee to the fund. The daily capital protection of 90% is locked in at the highest net asset value (NAV) achieved since the fund inception date.
“If markets trend downwards, and the fund’s NAV declines, the protection facility guarantees investors’ capital will not fall below 90% of the highest NAV recorded,” the company said.
The sub-fund is offered within the Amundi Funds Luxembourg-domiciled SICAV and is currently registered in Austria, France, Finland, Germany, Greece, Italy and Spain.
Amundi has currently €2.6bn in assets under management in protected flexible funds.
Christian Pellis, global head of distribution of Amundi, said: “In today’s long term, low interest rate environment, savers are caught between a rock and a hard place.
“With this fund, investors have a new approach to boosting returns without exposing themselves to too much risk. It has broad appeal for investors who, for many reasons, remain cautious, such as those looking to transition into lower risk strategies, or people approaching retirement who cannot afford to risk a fall in the value of their assets.”
Isabelle de Malherbe, head of product specialists – structured solutions at Amundi, added: “With its wide investment universe, the investment strategy adapts dynamically to different phases in market cycles. In this way, the fund seeks to achieve performance when market conditions are favourable while protecting the capital in the case of market downturns, thus minimizing volatility and risk.”
Amundi’s total AUM recently reached over €1trn, according to company statistics making it Europe’s largest asset management group.