Smart Beta Strategies
In a context of more frequent equity market shocks and higher volatility, investors are looking for new solutions providing robust performance and controlled - even exploited - risks.
In order to answer these new needs, Amundi offers a complete range of Smart Beta solutions, managed by a team of dedicated experts.
Smart Beta by Amundi : Our philosophy
A risk-oriented allocation
Asset allocation is changing, particularly due to exogenous shocks. The regulatory environment also leads to narrow capital requirement - and therefore the involved risks - without deteriorating performance.
Investors are thus increasingly wishing to conceive their allocation in terms of risks, rather than by country or sector.
To properly manage multi-dimensional risks, only a scientific and disciplined portfolio construction process can reduce the correlations and improve the diversification.
At Amundi, we are convinced that it is necessary to focus on risk management to generate a strong performance over the long term.
Bruno Taillardat , Global head of Smart Beta & Factor Investing, Amundi
A holistic approach of Smart Beta
The question is no longer why Smart Beta, but how to embrace it. Amundi mobilized the best of its resources (management teams, Research, Analysts, etc.) to identify, define and accompany the implementation of the Smart Beta strategy that fits the most the objectives and constraints of each investor.
Amundi’s approach of Smart Beta is holistic: we have a wide range of solutions available both in active and passive management. They aim either to capture rewarded risk premia in order to generate performance - « Factor Investing » solutions - or to limit the exposure to unrewarded risks - « Risk Efficient Solutions ».
Building tailor-made Smart Beta
In addition to open-ended funds, we can also provide investors with added-value services, to analyze their portfolios identify factor or risk biases that may affect negatively their performance. They can also benefit from our ability to build customized Smart Beta investment solutions, taking into account additional constraints such as ESG, Low Carbon, exclusions in terms of sectors or countries.
Working with recognized partners
A strategic partnership with ERI Scientific Beta
Since 2014, Amundi and the Edhec Risk Institute Sci Beta have partnered to combine ERI Scientific Beta’s expertise in the design of smart beta indices and Amundi’s know-how in offering innovative factor investing solutions.
Maximizing diversification in order to capture the risk premium of an asset class
- TOBAM’s Maximum Diversification® approach, supported by original, patented research and a mathematical definition of diversification, provides clients with diversified core exposure, in both the equity and fixed income markets
- The Anti-Benchmark® strategy is based on the Maximum Diversification® approach and designed to access risk premium evenly from all the effective independent sources of risk available in the market at any given time
- Fully quantitative approach, developed, refined and maintained in-house by TOBAM research team
Smart Beta at Amundi
12 bn €
of assets under
dedicated portfolio managers in Paris, Tokyo and Hong Kong
Source : Amundi as of 31/12/2016
Smart Beta by Amundi
Practical applications of Smart Beta: learning from client business cases
Using Factor Investing: How to make the most of factors
Positioning Value in portfolio construction
Alternative Risk Premia: What Do We Know?
This information is exclusively intended for “Professional” investors within the meaning of the MiFID Directive 2004/39/EC of 21 April 2004, and articles 314-4 and following of the General Regulations of the AMF. It is not intended for the general public or for non-professional individual investors within the meaning of all local regulations, or for “US Persons”, as defined in the Securities and Exchange Commission’s “Regulation S” under the 1933 U.S. Securities Act.
This non-contractual information does not under any circumstances constitute an offer to buy, a solicitation to sell, or advice to invest in financial instruments of Amundi or one of its affiliates (“Amundi”).
Investing involves risks. The performance of the strategies is not guaranteed. In addition, past performance is not in any way a guarantee or a reliable indicator of current or future performance. Investors may lose all or part of the capital originally invested.
Potential investors are encouraged to consult a professional adviser in order to determine whether such an investment is suitable for their profile and must not base their investment decisions solely on the information contained in this document.
Amundi assumes no liability, either direct or indirect, resulting from the use of any of the information contained in this document, and shall not under any circumstances be held liable for any decisions taken on the basis of this information. This information may not be copied, reproduced, modified, translated or distributed, without the prior written approval of Amundi, for any third person or entity in any country or jurisdiction which would subject Amundi or any of its products to any registration requirements within these jurisdictions or where this might be considered unlawful.
This information is provided to you based on sources that Amundi considers to be reliable, and it may be modified without prior warning.
Our solutions do not offer a performance or capital guarantee and present a risk of capital loss