06.06.2017

Amundi brings investors a focus on US mid cap equities with Amundi Funds Wells Fargo US Mid Cap

Amundi, the leading European asset manager with EUR 1.1 trillion in assets[1], offers investors exposure to US domestic growth potential with Amundi Funds Wells Fargo US Mid Cap, a sub-fund of its Luxembourg flagship SICAV.

This sub-fund, formerly Amundi Funds Equity US Concentrated Core[2], aims to achieve long-term capital growth, and specifically to outperform (after applicable fees) the MSCI USA Mid Cap index over any given 5-year period[3].

Mid Cap stocks – an interesting asset class with long term structural benefits

When investing in equities, investors typically think of large cap securities. These securities offer a highly diversified investment universe covering a wide variety of sectors and industries comprising companies that are household names, the stocks of which are liquid and familiar to investors. Mid cap stocks, are by contrast, often overlooked by investors. The company names may be less familiar but they are no less a source of opportunity for performance[3].

Factors inherent to mid-cap value stocks, such as their cap size, involvement in M&A activity, and value characteristics, contribute to the consistent outperformance enjoyed by mid-cap value stocks over the long term.  Midcaps  are  in  the  ―sweet  spot‖  of  the  company  life  cycle.  Compared  with  small-cap  companies, midcaps may have the critical size required to endure poor economic or business developments and have survived the high-risk proof-of-concept phase. Yet, compared with large caps, they have the potential to grow shareholder value at a relatively higher rate. Midcaps are often prime acquisition targets for other companies seeking growth, which can also be a source of value creation and performance.

An experienced investment team with a strong track record

Amundi Funds Wells Fargo US Mid Cap is managed by Wells Fargo Asset Management‘s Special Equity team, with a collective experience of over 35 years, supported by 11 research dedicated analysts4. The investment strategy benefits from a strong track record, and the team manages more than USD 10bn today[2].

The sub-fund is managed in line with the Wells Fargo US mid cap value strategy, which has an well- established 15-year track record. Its gross annualized performance for 1-, 3- and 5-year returns is 21.1%, 10.3%, 16.2% respectively[5].

The investment team actively manages the sub-fund‘s portfolio[3] by using a fundamental analysis (bottom- up) that aims to select the most attractive equities of cash rich companies having undervalued assets or growth potential and limited downside risk. The resulting portfolio is comprised of 50 to 70 equities. As the fund is invested in mid cap companies, which derive 85% of income from the US domestic market[6].

 

  1. Source: Amundi as at 31/03/2017. No.1 European asset manager based on global assets under management (AUM) and the main headquarters being based in Continental Europe - Source IPE ―Top 400 asset managers‖ published in June 2016 and based on AUM as at December 2015.‖
  2. Amundi Funds Equity US Concentrated Core, managed by TCW Investment Management Company, benchmark Russell 1000 Growth (Total Return) until May 3, 2017.
  3. The Sub-Fund does not offer a performance or capital guarantee. For further details on the risks linked to this sub-fund, please refer to the Key Investor Information Document (KIID) and the Prospectus of Amundi Funds.
  4. Source: Wells Fargo Asset Management as at 31/03/2017.
  5. Source: Wells Fargo Asset Management as at 30 April 2017. Performance figure provided for indicative purposes only. Past performance is not indicative of future returns. Note: Figures GIPS® compliant.
  6. Past market trends are not indicative of future market behaviour.

 

Amundi-Wells Fargo partnership

Following a strict selection process, Amundi has chosen Wells Fargo Asset Management in a unique co- branding initiative between the two fund houses. Wells Fargo Asset Management brings its expertise in US mid cap investment with a long track record and consistent performance which is highly complementary to Amundi ‗s fund offering and global distribution with local reach across Europe and Asia.

Christian Pellis, Global Head of Distribution, comments ―Amundi Funds Wells Fargo US Mid Cap responds demand among our investors for opportunities to capture performance in the US domestic market.  For many investors, US mid-caps can complement large cap investment as part of their asset allocation.‖

Bryant  VanCronkhite,  Co-Team  Leader  of  the  fund  at  Wells  Fargo  Asset  Management,  adds  ―We  are excited to be partnering with Amundi to offer our unique accounting-based investment philosophy and process for investing in US Mid Cap stocks. We've found this niche to provide exceptional risk-adjusted returns in the past and believe we have more of the same ahead of us.

 

Key Information: Amundi Funds Wells Fargo US Mid Cap

 

Share class

AU

Management company

Amundi Luxembourg S.A.

Delegated Investment Manager

Wells Fargo Asset Management

Custodian

Caceis Bank Luxembourg Branch

 

 

Reference currency

USD

Dividend policy

Accumulation/Distribution

ISIN code

LU0568602667 (C) LU0568602741 (D)

Minimum initial subscription

None

NAV calculation frequency

Daily

Cut-off for receiving orders1

Each trading day before 14:00, Luxembourg time

Max. management fees

1.70%

Administration fees

0.40%

Estimated annual ongoing charges

2.20% of the average net assets

Maximum entry charges

4.50%

Maximum switching charges

1.00%

Exit charges

None

Performance fees3

20%

 

This document is provided in addition to the Key Investor Information Document (KIID) and should be understood in light of the latter.

  1. Or, where appropriate, at the time set by the local distributor concerned.
  2. These charges correspond to the maximum management charges incurred by the fund through investment in other funds or sub-funds.
  3. Reference for performance fee: MSCI USA Mid Cap (Russell 1000 Growth (Total Return) until May 3, 2017) index. Fee applies only to share class performance that exceeds this reference.

Performance fee measurement period: 1 years period from 1 Jun - 31 May. Until May 3, 2017, the sub-fund [applied/applies] the 1/3 year(s) period from 1 Jul – 30 Jun. The first 1 year period will end on May 31, 2018.

  1. Ongoing charges as of 3 May 2017.

 

 

For further details on fees, please refer to Amundi Funds prospectus

 

KIID main risks

Concentration, market risk, credit risk, currency risk, liquidity risk, counterparty risk

 

 

 

Risk and yield profile KIID risk

 

1     2    3     4    5     6     7

 

Risk/Reward Profile (SRRI)

1 = Lower risk, potentially lower return 7= Higher risk, potentially higher return

 

The SRRI corresponds to the risk/reward profile shown in the Key Investor Information Document (KIID). The lowest category does not mean ―risk-free‖. The SRRI is not guaranteed and may vary over time.

 

Press contacts:

Amundi Natacha Sharp

Tel. +33 1 76 37 86 05

natacha.sharp@amundi.com

 

Maitland

William Clutterbuck

Tel: +44 (0) 207 379 5151

wclutterbuck@maitland.co.uk

Publicly traded since November 2015, Amundi is the largest European Asset Manager in terms of AUM(*), with over €1.1 trillion worldwide. Headquartered in Paris, France, Amundi has seven investment hubs located in the world‘s key financial centres, and offers a combination of research depth and market experience that has earned the confidence of its clients.

Amundi is the trusted partner of 100 million retail clients, 1,000 institutional clients and 1,000 distributors in more than 30 countries, and designs innovative, high-performing products and services for these types of clients tailored specifically to their needs and risk profile**. Go to amundi.com for more information or to find an Amundi office near you.

Go to http://www.amundi.com for more information.

 

*Amundi figures as of 31 March 2017. (*) No.1 European asset manager based on global assets under management (AUM) and the main headquarters being based in Continental Europe - Source IPE “Top 400 asset managers” published in June 2016 and based on AUM as at December 2015. ** Amundi May 2017

Wells Fargo Asset Management, a division of Wells Fargo Wealth and Investment Management, strives to help clients achieve their financial goals through top-tier investment options managed by specialized investment teams that are supported by independent risk management and backed by superior, collaborative service. With more than $482 billion in assets under management—as of December 31, 2016—Wells Fargo Asset Management has 29 autonomous investment teams with specialized expertise and proven processes; more than 500 investment professionals; and a global reach with offices and clients around the world.

https://wellsfargoassetmanagement.com

 

Source: Wells Fargo Asset Management, May 2017.