Smart Beta

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

United Kingdom, January 23, 2018 by Amundi

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.

Important information

* Source: Amundi AM at end November 2017

Document intended exclusively for journalists and media professionals. The information is provided solely to give them an overview of the Funds, regardless of the use to which they put that information, over which they have full editorial independence and in respect of which Amundi Asset Management accepts no liability.

This document is not intended for use by residents or citizens of the United States of America and “U.S. Persons” as defined by Regulation S of the Securities and Exchange Commission by virtue of the U.S. Securities Act of 1933. You can find the definition of “U.S. Person” in the legal notices of the website: www.amundi.com website and in the prospectus of the Funds described in this document. 

The present document goes with the Key Investor Information Document (KIID) of Amundi Funds Dynamic Multi Factors Europe Equity, Amundi Funds Dynamic Multi Factors Euro Equity and Amundi Funds Dynamic Multi Factors Global Equity and the Amundi Funds Prospectus available from Amundi Luxembourg S.A.

This document contains information about Amundi Funds Dynamic Multi Factors Europe Equity, Amundi Funds Dynamic Multi Factors Euro Equity and Amundi Funds Dynamic Multi Factors Global Equity ("the sub-funds") ,3 sub-funds of Amundi Funds, a collective investment in transferable securities established under Part I of the Luxembourg law of December 17, 2010 as a SICAV, registered with the Luxembourg Trade and Companies Register under number B 68.806 (the "SICAV"). The SICAV is headquartered at 5 Allée Scheffer, L-2520 Luxembourg. The SICAV has been authorized for marketing to the general public by the Supervisory Commission of the Financial Sector in Luxembourg. The funds are  recognised collective investment schemes under S.264 of the United Kingdom Financial Services & Markets Act 2000.

1- Investment involves risk. Past performance do not guarantee future results, nor are they reliable indicators of future performances. The value of an investment may go down as well as up. The Sub-Fund does not offer a performance guarantee Therefore, investors may lose part of their initial capital 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 Funds official documents, the latest full Prospectus (not translated in French) and / or the key information document for the investor (KIID) of the Sub-fund , the latest annual and semi-annual reports and statutes may be obtained free at Amundi Funds headquarters (90 Boulevard Pasteur 75015 Paris) or on the sites of Amundi.com.

2- For further details on the investment policy and the risks related to these sub-funds, please refer to the Prospectus and the Key Investor Investment Documents.

3- Given for indicative purpose only, it may be changed without prior notice in the limits indicated in the Prospectus.

Amundi Asset Management accepts no responsibility, directly or indirectly, that may result from the information contained herein. Amundi Asset Management can in no way be held responsible for any decision taken on the basis of information contained herein. This non-binding document is based on sources we consider reliable. The information in this document is valid in December 2017 and may be modified subsequently without notice. The information in this document does not constitute any recommendation, offer solicitation or an offer purchase, sales, marketing, investment advice or arbitration shares of a UCITS presented and should in no be construed as such.

This document has not been reviewed by any regulatory authority. No regulatory authority will take the responsibility of financial accuracy or any provision or views expressed in this document. This document shall not be distributed without the prior written consent of Amundi Asset Management or any third person in any country where such distribution or use would be contrary to legal and regulatory requirements or require Amundi Asset Management or its products comply with registration requirements with the supervisory authorities in those countries; it cannot be distributed to "US persons" as defined under the US Securities Act of 1933.

Promotional & non-contractual Information which should not in any way be regarded as investment advice, an investment recommendation, a solicitation of an investment offer, or a purchase of any financial securities.

This document is being issued inside the United Kingdom by Amundi Asset Management, with a share capital of EUR 746 262 615, Registered office : 90 boulevard Pasteur 75015 Paris France - 437 574 452 RCS Paris - which is authorised by the AMF under number GP04000036 and subject to limited regulation by the Financial Conduct Authority for the conduct of investment business in the UK  under number 401883 with its registered office at 41 Lothbury, London EC2R 7HF. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.