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Amundi launches a new generation of structured product

Amundi has launched a new fund aimed at investors seeking investment returns with the comfort of a permanent partial capital protection. This new generation of flexible and multiasset structured fund combines, active management to provide moderate growth while controlling the risk of capital loss.

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With today’s low interest rate environment and highly volatile markets, many investors are faced with the challenge of deciding how to save and build capital while protecting their investments over the long term. Traditional forms of savings, can no longer be relied upon to provide regular, growth and income. In reality, they can erode invested capital when inflation is taken into account.

The fund is designed for investors looking for returns through financial market investment but who do not have the appetite for the associated risks.

A broad investment universe with active dynamic management  [1]

This fund aims to achieve moderate growth through an actively managed portfolio based on fundamental market analysis and investment with conviction. The fund management team can seek performance opportunities from a wide investment universe drawing from the complete range of asset classes, sectors and industries, issuers, geographical areas and currencies. When market conditions are on an upward trend, the fund invests in riskier assets, such as equities and corporate bonds, to capture their performance potential. When the market starts to show signs of a negative trend, the managers reduce the portfolio’s level of risk and the fund shifts towards less risky assets, such as government bonds and money market instruments.

Peace of mind through the partial permanent capital protection

For investors reluctant to take risk on their capital, Amundi has integrated a partial permanent capital guarantee. The daily capital protection of 90% is locked in at the highest net asset value (NAV) achieved since the fund inception date. In this way, the level of protection increases each time the fund’s NAV reaches a new high.

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. In addition, this new generation of structured product offers subscription and redemption any time without penalty to the guarantee, so investors can access their investment whenever required.

Christian Pellis, Global Head of Distribution of Amundi, says "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, of Amundi, "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. With EUR 2.6 billion in assets under management in protected flexible funds and a 25-year track record in structured funds, Amundi is a renowned key player in the European market.”

Next Finance September 2016

Article also available in : English EN | français FR


[1] For more information on the investment policy, please refer to the Fund Prospectus and the Sub-fund KIID



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