The sub-fund of the Amundi Funds Luxembourg SICAV is targeted at investors seeking ‘flexible diversified management for consistent performance’, the firm said.
The fund aims to outperform the Eonia with dividends reinvested by over 2.5% per annum over a three-year investment horizon, before fees.
Amundi said that in a historically low bond and money market yield environment, with strong equity market volatility, traditional static allocations no longer deliver expected returns.
The firm believes that despite this there are ‘many opportunities’ provided an investor knows how to identify and lock in attractive risk premiums.
The fund uses what Amundi dubs ‘flexible and opportunistic’ management with an allocation tied to a predefined risk budget. The maximum ex-ante volatility of 4% makes limits the impact of sharp movements in risky asset markets, Amundi claims.
“We use a multi asset class and international allocation to tap different sources of performance and adapt our fund’s exposure to the various markets, within a well-defined framework,” said Alexandre Burgues, the fund’s co-manager.
Amundi had total assets in balanced management of €116 billion at 30 June 2015.
