10.01.2018

Amundi extends its Smart Beta and Factor Investing range with a new Dynamic Multi Factor Allocation process

London, 10/01/2018:  Amundi launches a dynamic multi factor equity range within its Luxembourg international flagship Amundi Funds SICAV: “Amundi Funds Dynamic Multi Factors Euro Equity”, “Amundi Funds Dynamic Multi Factors Europe Equity” and “Amundi Funds Dynamic Multi Factors Global Equity”.

These sub-funds aim to seek long-term capital growth1 by applying a Dynamic Multi Factor Allocation process on Eurozone, Europe and Global equity universe, respectively. It offers investors the opportunity to capture factor risk premia and navigate through equity market cycles².

“Factor Investing is gaining strong traction amongst investors and we are pleased to extend our broad Smart Beta and Factor Investing capabilities. We are convinced that this risk-focused investment philosophy will meet investors’ structural need for robust risk-management through factors, as well as helping them facing the very specific current environment” declares Fannie Wurtz, Managing Director Amundi ETF, Indexing & Smart Beta.   

Amundi’s Dynamic Factor Allocation process puts risk management at the core of the strategy: "We believe that the best way to achieve long-term and robust performance is to manage all the different risk dimensions" says Bruno Taillardat, Global Head of Smart Beta and Factor Investing at Amundi. "Once we build consistent and robust factors, the challenge is to allocate among them all along the cycle, as risks evolve over time.”

The investment process is based on 3 steps3. Firstly, factor portfolios are built using Amundi proprietary research capabilities. Factors are then combined using a strategic allocation methodology, where each factor must contribute equally to the portfolio risk profile. The management team implements long-term combination in line with market regime shift periods. In addition, to avoid bias and to tackle valuation risks, the team readjusts tactically among factors. Finally, portfolio guidelines are applied to avoid concentration and limit execution costs.

These Amundi Dynamic Multi Factor Allocation solutions are managed within the Smart Beta and Factor Investing dedicated platform, supported by Thierry Roncalli, Head of Quantitative Research at Amundi, and his teams. In addition to open-ended funds, Amundi teams are fully committed to adapt the approach to specific investors’ constraints to build customized solutions; for instance  with the integration of SRI, ESG, and Low Carbon criteria, which can be considered as unrewarded risks.

Overall, the Amundi Smart Beta and Factor Investing Solutions platform represents more than €19bn AUM*, with a wide range of risk-efficient and factor investing solutions available in active and passive management.

 

 

 

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1. The ongoing charges represent the charges taken from the fund over a year as disclosed in the KID. When the fund has not closed its accounts for the first time, the ongoing charges are estimated. It is a measure that compares the annual total management and operating costs (all taxes included) charged to a fund against the value of that fund’s assets.

2. Please see the prospectus for a detailed explanation of the calculation of performance fees

For further details on the share classes, as well as registration countries, please refer to the Key Information Investor Document and to the Prospectus of the Amundi Funds Sicav.

Amundi is Europe’s largest asset manager by assets under management and ranks in the top 10[1] globally. Thanks to the integration of Pioneer Investments, it now manages 1.4 trillion[2] euros of assets across six main investment hubs[3]. Amundi offers its clients in Europe, Asia-Pacific, the Middle-East and the Americas a wealth of market expertise and a full range of capabilities across the active, passive and real assets investment universes.  Headquartered in Paris, and listed since November 2015, Amundi is the 1st asset manager in Europe by market capitalization[4].

Leveraging the benefits of its increased scope and size, Amundi has the ability to offer new and enhanced services and tools to its clients. Thanks to its unique research capabilities and the skills of close to 5,000 team members and market experts based in 37 countries, Amundi provides retail, institutional and corporate clients with innovative investment strategies and solutions tailored to their needs, targeted outcomes and risk profiles.

Amundi. Confidence must be earned.

 

Visit amundi.com for more information or to find an Amundi office near you.

Footnotes

2 Amundi figures as of September 30, 2017

  1. ^ [1] Source IPE “Top 400 asset managers” published in June 2017 and based on AUM as of end December 2016.
  2. ^ undefined
  3. ^ [3] Investment hubs: Boston, Dublin, London, Milan, Paris and Tokyo
  4. ^ [4] Based on market capitalization as of September 30, 2017