Amundi Funds Bond Global Aggregate continues to generate strong returns within its broad global bond and currency universe.
The London-based management team has posted a net annualized performance of +12.3% since inception¹, placing the Luxembourg domiciled sub-fund, 5 star-rated by Morningstar² at the top of the Global Bond peer universe. The Global Aggregate expertise further adds to the success of 20 years of Global Fixed Income management at Amundi.
FLEXIBILITY AND DIVERSIFICATION ARE KEY; THE SOURCES OF EXCESS RETURN ARE DYNAMIC OVER TIME
“Amundi Funds Bond Global Aggregate is what we like to describe as a full cycle fund; we do not want to be a prisoner of any particular asset class, but to be independent and avoid any bias. This has enabled the fund to perform well under most market conditions, both in risk on and risk off regimes.”
Our macro-economic analysis results in top-down directional and relative value views on most developed and developing government & corporate bond and currency markets. The bottom-up sector, issuer and security selection leverages on Amundi’s strong in-house research teams based in Paris, London and Singapore.
Whilst strategic long-term strategies represent the majority of our portfolio’s allocation, short-term volatility present on financial markets also offers great opportunities. In fact, short-term tactical management continues to be an important source of returns.
Risk management is embedded in our investment process. Each position is evaluated by its contribution to portfolio risk. Drawdown management is part of our strategic outlook and is actively implemented through derivative instruments permitted within the Ucits framework. Liquidity is constantly monitored to honour the sub-fund daily liquidity.
COLLABORATION BETWEEN TEAMS AND IDEA GENERATION ARE ACTIVELY ENCOURAGED
The Global Aggregate team is located in Amundi’s London city office which is home to the group’s global developed and emerging sovereign, corporate credit and currency expertise.
“Global Aggregate is an ongoing and highly active allocation between different asset classes.We benefit significantly from the other teams feeding their expertise into the Aggregate process.The total is greater than the sum of its parts”.
OUR CURRENT ALLOCATION IS WELL BALANCED BETWEEN THE GLOBAL BOND, CREDIT AND CURRENCY MARKETS. WE HAVE INCREASED THE LEVEL OF ACTIVE RISK IN THE PORTFOLIO SINCE THIS SUMMER
The team has remained constructive on credit fundamentals through most of the year, reducing somewhat in Q2 as the periphery worries and the cyclical slowdown started to weigh on sentiment. Whilst remaining positive on the asset class, we have started to take a bit of profit after the September rally. Some issuers have become very expensive and specific risk has become asymmetrical, meaning that we will place even more importance on issuer selection going forward. However, we think that investors’ hunt for yield will continue as the prevailing low interest rate environment will be with us for quite some time.
In this more constructive environment for risk, emerging currencies such as the Mexican peso, Malaysian ringgit and Russian ruble are attractive on both fundamental and valuation basis. Within developed markets, the US dollar remains a safe haven which will protect the portfolio in case of such an adverse scenario coming to pass.
On global bonds “safe haven” market yields should increase over the coming months.“To accommodate the changes in the drivers of global bond yields, we have downgraded our view on global duration in all of our portfolios, particularly via a reduction in the weight of US treasuries”.
Given the uncertainty, the team continues to be highly active tactically and makes full use of options strategies to enhance performance without increasing portfolio volatility.
STRONG OUT PERFORMANCE
Recent performances have been driven by credit spread compression and developed market currency strategies.
These convictions have enabled Amundi Funds Bond Global Aggregate to generate a positive performance of +31.39%1 (+15% compared to its reference indicator) over a three-year period. Find out more on globalaggregate.amundi.com.
1. Data as at end of August 2012 in USD. Inception date 30 Oct 07. Amundi Funds Bond Global Aggregate does not offer guaranteed performance.
2. ©  Morningstar, Inc. All Rights Reserved. End of August 2012. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
This material is solely for the attention of "professional” investors: eg. 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”. 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), the Swiss Collective Investment Schemes Ordinance of 22 November 2006 (CISO) and the FINMA’s Circular 08/8 on Public Offering within the meaning of the legislation on Collective Investment Schemes of 20 November 2008. 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.
This document contains information about Amundi Funds Bond Global Aggregate (the “Sub-Fund”), a sub-fund of Amundi Funds (the “Sicav”), an undertaking for collective investment in transferable securities existing under Part I of the Luxembourg law of 17th December 2010, organised as a société d’investissement à capital variable and registered with the Luxembourg Trade and Companies Register under number B68.806. The SICAV has its registered office at 5, allée Scheffer, l-2520 Luxembourg.
The Sub-Fund has been authorised for public sale by the Commission de Surveillance du Secteur Financier in Luxembourg, and in the following countries: Netherlands, France, Greece, Norway, Austria, Finland, Spain, Sweden, United Kingdom, Germany and Switzerland.
Not all sub-funds of the SICAV (the "Sub-Funds") 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 SICAV’s latest complete and the key investment information documents (KIID) of the sub-fund, its latest annual and semi-annual 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. Consideration should be given to whether the risks attached to an investment in the Sub-Funds are suitable for prospective investors who should ensure that they fully understand the contents of this document. A professional advisor should be consulted to determine whether an investment in the Sub-Funds is suitable. The value of, and any income from, an investment in the Sub-Funds can decrease as well as increase. The Sub- Funds have no guaranteed performance. Further, 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. This document does not constitute an offer to buy nor a solicitation to sell in any country where it might be considered as unlawful, nor does it constitute public advertising or investment advice. The information contained in this material is deemed accurate as at October 2012. Amundi, French joint stock company (“Société Anonyme”) with a registered capital of € 584 710 755 and approved by the French Securities Regulator (Autorité des Marchés Financiers-AMF) under number GP 04000036 as a portfolio management company, 90 boulevard Pasteur - 75015 Paris - France - 437 574 452 RCS Paris