Bringing you live news and features since 2006 

Amundi launches a new ‘Buy and Watch’ fund family within Amundi Fund Solutions SICAV


As part of a new range of solutions for the distribution market, Amundi has launched the first fund in a new ‘Buy & Watch’ fund family, Amundi Fund Solutions SICAV, which is designed to offer investments with an income objective through an annual coupon.

The strategy offers a well-diversified portfolio of bonds selected and managed by a team of highly experienced credit specialists with the aim of delivering an income objective over a defined maturity of six years with an estimated target annual coupon.
Against a backdrop of negative returns for the majority of asset classes during 2018 and into 2019, investors are faced with persistently low performance in government bonds and increasing volatility in equities. In addition, market narrative on expectations in terms of slowing growth in the late cycle phase of the market is compelling investors to rethink their risk approach and reassess asset allocation in general.
The objective of the fund is to achieve income and, as a secondary objective, capital appreciation over the recommended holding period of six years.
The fund will be well diversified and predominantly invested in investment grade credit securities with maturity or call dates aligned with the fund maturity. Using a fundamental driven, bottom-up, conservative approach, the portfolio management team will select a wide range of global credit issuance from all sectors in developed and emerging markets, in a range of currencies mainly in Euros, but also US dollar and UK sterling, and using the complete array of credit ratings. The ratings will be weighted at around 70 per cent for investment grade and around 30 per cent for high yield, with an average rating of BBB-.
Investors can subscribe to the fund over a period of nine weeks, after which it is recommended to remain invested in the fund for the prescribed period to the target maturity date of June 2025.
Jean-Marie Dumas (pictured), Head of Fixed Income Solutions, Amundi, says: “In a world of persistently low interest rates, investors are looking for new ways to get attractive returns on their investments. Target maturity Buy and Watch solutions offer a good alternative to traditional bond funds by capturing attractive risk premia and providing visibility into the future rate of return for a given time horizon.”
The fund is a Luxembourg SICAV will be registered in various European countries including Czech Republic, Slovakia, Germany, Spain, Austria, Finland, the Netherlands, Hungary.

Latest News

Just the two European launches this week with Fidelity bringing us a global government bond climate aware UCITS ETF and..
Ten new ETF solutions were launched for the week, each with a distinct value proposition for investors.  Detailed below are..
U.S. Bank has announced the launch of their new ETF services in Europe, as well as their first client for..
ETF data providers ETFGI has reported that the ETFs industry in the United States gathered net inflows of USD8.17 billion..

Related Articles

ETF Awards
We are very pleased to bring you the winners in the 13th outing of the ETF Express European ETF Awards,...
Off the Record Episode 1
ETF Express is pleased to announce the launch of Off the Record, a new podcast series, in partnership with Truss...
February ETF flow figures from iShares at BlackRock reveal that inflows into global ETPs were moderate for a fifth consecutive...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by