Global Fixed Income Strategies

Transcription

1 Global Fixed Income Strategies This document is intended for professional investors only. For further details please refer to the disclosures at the end of this document.

2 As one of the world s largest investment managers, Amundi has the scale and reach required to invest successfully in today s Global Fixed Income markets. We use our extensive resources to tap value wherever it exists and focus on delivering investment performance over the long term. Investors access our expertise through a broad range of actively managed funds and individually tailored strategies. They enjoy competitive management fees, full liquidity and an efficient service.

3 Global Fixed Income Strategies 3 AN ACTIVE AND DIVERSIFIED APPROACH OPPORTUNITIES Global Fixed Income markets offer more investment opportunities than ever before. As their size and structure continues to expand and evolve, they provide new ways to enhance potential returns. 1 In today s low-yield environment successful investing requires an active and diversified approach as well as a thorough understanding of both the complexities and risks involved. INSIGHT Amundi brings this expertise and insight to investors. We have the scale and reach to explore the full fixed income universe, and aim to capture value by using innovative investment techniques. Combined with the ability to invest across developed and emerging regions, we have the flexibility to take advantage of the different risk and return profiles available. PRECISION Using this approach, we manage global portfolios within defined investment objectives. By spreading investments across countries at different stages of the economic and interest rate cycle, we exploit opportunities as they arise. Our fixed income strategies respond to local changes in the pace of economic growth, macroeconomic conditions and monetary policy as well as the business and political climate. Pascal Blanqué Head of Institutional Investors and Third Party Distributors, CIO of Amundi Group As the world s economy and financial markets become more closely connected, conditions are changing at a faster pace than ever before. Within this evolving landscape, Global Fixed Income markets offer a broad range of investment opportunities. 1. Our fixed income strategies do not offer a performance or capital guarantee.

4 4 A NEW INVESTMENT LANDSCAPE The global economy and financial markets have changed profoundly since the 2008 financial crisis. There remain substantial differences between regions and within them. Based on our analysis, the pace of growth and health of public and private finance as well as fiscal and monetary policies have diverged. We believe important regional transitions will continue to drive investment opportunities and present new risks. Eric Brard Global Head of Fixed Income Over the past 20 years we have developed and refined the investment process behind our Global Fixed Income strategies. Our teams have the insight required to seek out new opportunities and the expertise to develop innovative investment strategies. One of the most significant changes could be the return to normal monetary policies in the US, the world s largest economy. We believe that if plentiful central bank liquidity drains from the system and interest rates rise, there could be far-reaching implications for global investors. Meanwhile, Europe and Japan must continue to pursue monetary and fiscal policies and implement the structural reforms necessary for growth. As the world s second-largest economy, China faces essential changes in order to maintain growth targets from liberalising its financial system to rebalancing the economy towards domestic consumption. Meanwhile, economic reforms are crucial across emerging markets to keep growth on track. EVALUATE THE RISKS AND CAPTURE THE OPPORTUNITIES Evaluating the risks and capturing the opportunities available in fixed income markets requires fresh thinking. At Amundi we believe the rigidity of traditional benchmarks is no longer valid for this new landscape. Searching for performance in today s low-rate environment requires a global and diversified approach with the freedom to invest across all regions and incorporate all asset classes within the fixed income universe.

5 Global Fixed Income Strategies 5 ADAPT TO THE CHANGING ENVIRONMENT What can Global Fixed Income investors do to optimise their portfolios? We believe the answer is to consider the full investment universe from government bonds to investment grade and high yield credit, convertible bonds, asset-backed securities, inflation-linked and emerging market debt. Our strategies may also provide exposure to foreign exchange, where we incorporate currency views aiming to enhance returns. 1 Within our investment process, we combine strategic holdings that capture longer-term views with tactical ideas that take advantage of shorter-term opportunities. This diversification across the fixed income spectrum provides the flexibility to seek portfolio returns when financial markets are particularly volatile. 1 GLOBAL FIXED INCOME INVESTMENT UNIVERSE Government Bonds ATTRACTIVE ABSOLUTE AND RELATIVE RETURNS 1 Our investment strategy aims to adjust exposure according to the degree of confidence we have in our return expectations. Through the effective use of derivatives and consideration of entailed risks, we express our investment views regardless of the direction of yields. Using this approach we target both absolute and relative returns 1 through all parts of the business cycle. Within our risk management framework, we have a strong focus on maintaining portfolio liquidity, which allows us to implement our investment decisions quickly and easily. At the same time, we manage a strict risk budget allocating risk carefully across our strategies to deliver superior risk-adjusted returns. 1 High Yield Bonds Emerging Market Debt Investment Grade Credit Amundi s investment strategies aim to capture value across all parts of the Global Fixed Income universe Currencies Convertible Bonds Inflation-Linked Bonds Securitised Debt 1. Our fixed income strategies do not offer a performance or capital guarantee.

6 6 INVESTMENT EXPERIENCE AND EXPERTISE Amundi is one of the world s largest bond investors. Of the 821 billion 1 managed by the Amundi Group, 583 billion 2 are in fixed income strategies. Our global presence provides a powerful combination of local market knowledge with broad access to financial markets and extensive investment resources. Our experienced Global Fixed Income team based in London manages 18 billion 3 in Global Fixed Income strategies (excluding Global Inflation). This team draws on the wisdom and expertise provided by the Amundi Group including 20 investment strategy and economic research professionals, 24 credit analysts and 17 quantitative analysts as well as 10 specialists dedicated to investing in emerging markets. 4 A TRIED AND TESTED APPROACH Our tried and tested investment process has remained stable over the past two decades and has weathered the 2008 financial crisis. This has earned Amundi its reputation as a leading Global Fixed Income investor. Our investment strategies are attractive to a wide range of investors whether investing for capital growth, to generate a regular income 5 or to manage your liabilities. 6 Amundi s funds exploit the full potential available in today s Global Fixed Income markets and the unique characteristics they offer. INVESTMENT PROCESS Our flexible and active management style seeks to tap value wherever it exists. We incorporate a robust management process that blends strategic macro views with active tactical management. 4. Manage We adapt our strategy to reflect market conditions and seek to take advantage of opportunities as they arise, while considering all the risks. Using derivatives we limit losses if our view is challenged. 1. Generate Using a disciplined research process, we formulate top-down views on global variables growth, inflation, liquidity, currencies, sentiment, duration and curves, and specific themes. 3. Implement We translate our views into quantified exposures relative to the relevant benchmarks.they are subject to our degree of conviction as well as tracking error and liquidity constraints. 2. Select We scale our views into positions using bottom-up analysis. Regular investment committees form part of our decision-making process and the teams interact on a daily basis. 1. Amundi Group figures as of June Amundi Group figures as of June Includes fixed income and money market strategies. 3. Amundi London Branch figures as of December For illustrative purposes only. 5. This is only applicable for investors in distribution share classes. 6. Our fixed income strategies do not offer a performance or capital guarantee.

7 Global Fixed Income Strategies 7 GLOBAL FIXED INCOME STRATEGIES Global Fixed Income markets provide opportunities 1 for investors that are not available from other asset classes, such as the potential for returns across various economic cycles. 2 Amundi offers a range of strategies, which you can access through either open-ended funds or investment management mandates tailored to your specific needs. GLOBAL BONDS Our flagship global strategy invests in a broad fixed income universe that provides diversification by issuer, industry sector, country, maturity and credit rating. It seeks to capture the changes in yield between securities as well as fluctuating foreign exchange rates across market cycles. INFLATION We express our views on inflation to capture opportunities while reducing downside risk. This strategy uses active management to tap four sources of performance sensitivity to real rates, positioning on the real rate curve, arbitrage between indexed and fixed rate bonds, and international diversification. 2 GLOBAL CREDIT More than 6,000 securities and 1,000 issuers make the investment grade corporate bond market one of the largest and most diversified. With more attractive valuations than government bonds, global credit aims to provide the potential for attractive risk-adjusted returns. We invest across all industry sectors and regions. EMERGING MARKETS This fast-growing investment universe provides opportunities to take advantage of the high rates of economic growth 1 throughout these regions. Our dedicated team of specialists has expertise across emerging sovereign debt (in local and foreign currencies), corporate debt and foreign exchange. CURRENCIES Amundi s foreign exchange capabilities aim to provide an additional source of performance as well as a means of hedging currency risk. We express our views using the most liquid derivatives, including forwards and options. 1. Past market trends are not indicative of future trends. 2. Our fixed income strategies do not offer a performance or capital guarantee.

8 8 FUND CHARACTERISTICS Investors can access Amundi s investment expertise through a large and varied range of Global Fixed Income funds, which are available in all major currencies. The table below highlights our main strategies. For more information including the latest performance, prices, commentary and analysis, key features and documents visit Fund Name Main Investment Exposure Reference Indicator Minimum Recommended Investment Period Amundi Funds Bond Global Aggregate Global bonds, currencies and related derivatives Barclays Global Aggregate Hedged 3 years Amundi Funds Global Macro Bonds & Currencies Global bonds, currencies and related derivatives Euro Overnight Index Average (EONIA) 3 years Amundi Funds Global Macro Forex Currencies and related derivatives Euro Overnight Index Average (EONIA) 1 year Amundi Funds Bond Global Inflation Global inflation Barclays World Government Inflation-linked Bond All Markets Euro Hedged 3 years Amundi Funds Bond Global Corporate Global credit Merrill Lynch Global Large Cap Corporate Index $ Hedged 3 years Amundi Funds Bond Global Emerging Emerging markets, currencies and related derivatives JP Morgan GBI-EM Global Diversified (USD) Unhedged 3 years Amundi Funds Bond Global Emerging Corporate Emerging markets CEMBI Broad Diversified Index 5 years Amundi Funds Global Macro Bonds & Currencies Low Vol Global bonds, currencies and related derivatives Euro Overnight Index Average (EONIA) 1 year This table does not include the full investment universe. For further details regarding the investment policies, eligible assets, limits and risks involved, please refer to the latest prospectus of Amundi Funds and to the sub-funds Key Investor Information Document. These documents can be obtained at the registered office of Amundi Funds at 5, allée Scheffer, l-2520 Luxembourg.

9 Global Fixed Income Strategies 9 MEET TOMORROW S INVESTMENT CHALLENGES Bond yields have fallen steadily over the past few decades. Yet this trend is coming to an end, creating less favourable conditions for investors. The Global Fixed Income markets are ideal for enhancing performance and reducing volatility in this environment. 1 With expertise in portfolio construction and active management, Amundi combines the most liquid investment strategies to tap value wherever it exists across the global investment universe. YOUR DEDICATED CONTACTS Global Head of External Distribution Christian Pellis christian.pellis@amundi.com Regional Contacts Benelux: Jovan Ponsioen jovan.ponsioen@amundi.com Chile Saul Santamaria saul.santamaria@amundi.com France David Benmussa david.benmussa@amundi.com Germany Axel Ullmann axel.ullmann@amundi.com Italy Paolo Proli paolo.proli@amundi.com Nordic countries: Christopher Crystal chistopher.crystal@amundi.com Portugal Alvaro Cabeza alvaro.cabeza@amundi.com Spain Raul Fernandez Hernandez raul.fernandezhernandez@amundi.com Switzerland Christian Mathern christian.mathern@amundi.com United Kingdom Jerry Devlin jerry.devlin@amundi.com 1. Our fixed income strategies do not offer a performance or capital guarantee.

10 10 This material is a marketing document. It is communicated for information purposes only and constitutes neither investment advice, nor an offer nor a solicitation to buy or sell a product, a fund, a SICAV, a sub-fund etc ( the mentioned Fund ) and should in no case be interpreted as such. This material is neither a contract nor a commitment of any sort. This material is solely for the attention of institutional, professional, qualified or sophisticated investors and distributors. It is not to be distributed to the general public, private customers or retail investors in any jurisdiction whatsoever nor to «US Persons». It is not intended for citizens or residents of the United States of America or to any «U.S. Person», as this term is defined in SEC Regulation S under the U.S. Securities Act of 1933 and in the prospectus of the fund. Moreover, any such investor should be, in the European Union, a «Professional» investor as defined in Directive 2004/39/EC dated 21 April 2004 on markets in financial instruments («MIFID») or as the case may be in each local regulations and, as far as the offering in Switzerland is concerned, a «Qualified Investor» within the meaning of the provisions of the Swiss Collective Investment Schemes Ordinance of 23 June 2006 (CISA) and the Swiss Collective Investment Schemes Ordinance of 22 November 2006 (CISO). In no event may this material be distributed in the European Union to non «Professional» investors as defined in the MIFID or in each local regulation, or in Switzerland to investors who do not comply with the definition of «qualified investors» as defined in the applicable legislation and regulation. The mentioned Fund is not necessarily registered or authorized in all jurisdictions or available to all investors. Investment involves risk. Past performances and simulations based on these, do not guarantee future results, nor are they reliable indicators of future performances. The value of an investment is subject to market fluctuations, and may therefore go down as well as up. It is therefore possible that an investor will not get back the amount it originally invested. Any investor should seek the advice of its legal and/or tax counsel or its financial advisor prior to any investment decision in order to determine the suitability of any investment before making any commitment or investment and should not only consider this material alone to make investment decisions. Amundi shall accept no liability whatsoever, whether direct or indirect, that may arise from the use of information contained in this material. Amundi can in no way be held responsible for any decision or investment made on the basis of information contained in this material. The information contained in this document is disclosed on a confidential basis and shall not be copied, reproduced, modified, translated or distributed without the prior written approval of Amundi, to any third person or entity in any country or jurisdiction which would subject Amundi or any of the Funds, to any registration requirements within these jurisdictions or where it might be considered as unlawful. Accordingly, this material is for distribution solely in jurisdictions where permitted and to persons who may receive it without breaching applicable legal or regulatory requirements. Amundi Funds Bond Global Aggregate, Amundi Funds Global Macro Bonds & Currencies, Amundi Funds Global Macro Forex, Amundi Funds Bond Global Inflation, Amundi Funds Bond Global Corporate, Amundi Funds Bond Global Emerging, Amundi Funds Bond Global Emerging Corporate and Amundi Funds Global Macro Bonds & Currencies Low Vol (the Sub-Funds ) are eight sub-funds of Amundi Funds, an undertaking for collective investment in transferable securities existing under Part I of the Luxembourg law of 17 December 2010, organised as a société d investissement à capital variable and registered with the Luxembourg Trade and Companies Register under number B68.806, with its registered office at 5, allée Scheffer, l-2520 Luxembourg. Amundi Funds has been authorised for public sale by the Commission de Surveillance du Secteur Financier in Luxembourg. Not all Sub-Funds of the SICAV will necessarily be registered or authorized for sale in all jurisdictions or be available to all investors. Subscriptions in the Sub-Funds will only be accepted on the basis of the Key Investor Information Document (KIID) of each sub-fund and the SICAV s latest prospectus, its latest annual and semiannual reports and its articles of incorporation that may be obtained, free of charge, at the registered office of the SICAV or respectively at that of the representative agent duly authorized and agreed by the relevant authority of each relevant concerned jurisdiction. Amundi Funds is a recognised scheme under section 264 of the Financial Services & Markets Act 2000 and, as such, is authorised to be marketed to the public in the United Kingdom. Not all sub-funds have UK reporting fund status. Further information is available on request. The information contained in this document is deemed accurate as of September Data, opinions and estimates may be changed without notice. In compliance with French applicable laws, Amundi s contacts have the right to receive, rectify or ask for deletion of the personal data Amundi holds on them. To enforce this right, they can contact Amundi at: info@amundi.com Document issued by Amundi S.A., French société anonyme, with a share capital of Portfolio manager regulated by the Autorité des Marchés Financiers (AMF or French Financial Markets Authority) under number GP Registered office: 90 boulevard Pasteur Paris France RCS Paris -

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12 Amundi, French joint stock company ( Société Anonyme ) with a registered capital of and regulated by the French Securities Regulator (Autorité des Marchés Financiers-AMF) under number GP as a portfolio management company. 90 boulevard Pasteur Paris- France RCS Paris - amundi.com Design: Amundi s Communication Department - 09/2014.