Amundi Funds Protect 90, an active and flexible approach

Wednesday 30 November 2016

An active and flexible approach

Amundi offers investors a unique way to increase their returns through an active management strategy that offers a partial capital protection.

Today’s low interest rates leave people who are attempting to save money for their future with a difficult choice. Keep your money in a cash account and suffer negligible returns, and possibly a fall in the real value of your wealth after the impact of inflation. Or seek a higher yield by investing in the markets and accept the associated risks, including the possibility that the value of your assets will fluctuate and could fall substantially.

Amundi offers a third choice that is somewhere in between through an investment solution that targets higher returns, while offering a degree of comfort that your capital is partially protected against market volatility. As its name suggests, Amundi Funds Protect 90 provides a guarantee that your investment will remain above a certain level.

The fund’s partial protection feature locks in capital so that it will never fall below 90% of the highest net asset value (NAV) recorded since inception regardless of the underlying performance in financial markets. As the NAV rises, so does the partial capital guarantee providing reassurance to investors against the risks of economic and financial uncertainty.

Adapt to a changing environment

Amundi’s diversified strategy invests across all asset classes, global regions and types of investments. As well as helping to enhance returns through exposure to a wide universe of investment opportunities, combining uncorrelated assets helps to reduce volatility and offer smoother investment performance.

Amundi Funds Protect 90 is actively managed, giving the investment team the flexibility to adapt to the continuously changing environment through tactical asset allocation and security selection decisions. A dynamic portfolio composition is based on fundamental market analysis and investing with conviction.

When market conditions are favourable, Amundi emphasises risky assets, such as equities and corporate bonds, to try to capture their performance potential. In bear markets, the managers reduce the portfolio’s level of risk and the fund shifts towards less risky assets (1). In the event of a sharp market downturn, the sub-fund may invest 100% of its assets in money market instruments. In such a case, it would not take advantage of the performance potential of dynamic assets.

Designed for cautious investors

One consequence of this cautious approach is the fund’s limited ability to participate fully when the market is rising. Amundi has not designed the fund to offer high returns but to encourage people into the world of investing through a product that reduces the risks by offering a partial capital protection. Although Amundi recommends a minimum investment period of at least three years, daily liquidity means investors can get their money back whenever they need it.

As well as targeting first-time investors, Amundi Funds Protect 90 is a suitable investment solution for more experienced investors who have been disappointed with the performance of multi-asset strategies and are using the fund as a transitional investment as they wait for market conditions to improve.

With a successful track record stretching back to 2008  on similar strategies for its European and Asian partner networks, the fund is backed by Amundi’s expertise in multi-asset investing and structured solutions. As conversations between financial advisers and their private clients increasingly turn to the low interest rate environment, Amundi Funds Protect 90 offers a fresh approach to meet this ongoing challenge.

When market conditions are favourable, Amundi emphasises risky assets, such as equities and corporate bonds, to try to capture their performance potential.

Isabelle de Malherbe
Head of product specialists Structured solutions

A dynamic investment strategy

Amundi Funds Protect 90 adjusts the composition of investments in line with conditions in underlying financial markets (1).

Click here to find out more about Amundi Funds Protect 90

(1)     For further details on the investment policy, please refer to the Amundi Funds Prospectus

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Moreover, this material is for the attention of institutional, professional, qualified or sophisticated investors, under the applicable law and regulations.

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This material is not to be distributed to the general public, private customers or retail investors in any jurisdiction whatsoever nor to “US Persons”.

AMUNDI FUNDS PROTECT 90 is a compartment of the SICAV AMUNDI FUNDS constituted and compliant with part I of the Luxembourg law of 17 December 2010. This product has been authorised by the Commission de Surveillance du Secteur Financier of Luxembourg on 27 June 2016. For all other jurisdictions, investors should seek the advice of a professional advisor in order to determine the suitability of the investment, because restrictions might apply.

Subscriptions in AMUNDI FUNDS PROTECT 90 will only be accepted on the basis of its latest key investor information document and the full prospectus, the latest annual and semi-annual reports and the articles of incorporation of AMUNDI FUNDS that may be obtained, free of charge and on demand, at the registered office of the managing company or of Amundi Asset Management.

The value of, and any income from, an investment in AMUNDI FUNDS PROTECT 90 can decrease as well as increase. Past performance is not a guarantee or a reliable indicator for current or future performance and returns. The performance data do not take account of the commissions and costs incurred on the issue and redemption of units.

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The information contained in this material is deemed accurate as at November 2016.

Amundi Asset Management SA, “société anonyme” with a share capital of 596 262 615  € - Portfolio manager regulated by the Autorité des Marchés Financiers (AMF or French Financial Markets Authority) under number GP04000036 – Registered office: 90 boulevard Pasteur – 75015 Paris – France – 437 574 452 RCS Paris - www.amundi.com .”