Amundi is launching its first Ucits III multi-manager absolute return fund to capture investment opportunity in the current low interest, highly volatile environment.
The Amundi Funds Multi-managers Long/Short Equity, is a new sub-fund of its Luxembourg-domiciled umbrella fund (Sicav), Amundi Funds. This sub-fund invests in Ucits III funds employing long/short and/or equity arbitrage strategies, as well as volatility management and will also be offered within the Ucits III wrapper.
The Amundi Funds Multi-managers Long/Short Equity aims to outperform Eonia by 5% p.a. while maintaining a maximum level of annual ex-post volatility of 8%.
The firm said that low interest and high volatility is particularly favourable for absolute return strategies, which aim to capitalise on the divergence in performance between securities, sectors or geographic regions rather than on global market trends.
The funds investment process is made up of three phases. The first includes analysis, fund selection and due diligence, the second portfolio construction and management and the third puts in place protection against extreme risks.
The Amundi Funds Multi-managers Long/Short Equity offers investors weekly liquidity, which the firm says is significantly more favourable than the monthly or even quarterly liquidity typically provided by alternative investment funds.
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