Best Ideas: Equity seeks entry point opportunities
Marketing Communication
Equity seeks entry point opportunities
We believe that equities can provide appealing entry points, but an overall cautious stance in developed markets equities should be maintained. On the other hand, investors should consider looking for divergences and benefit from rotations with a strong bottom-up focus. In general, we favour a combination of quality-value stocks and like high dividend names. US equities have been driven by downward movements in core yields recently, rather than any significant improvement in corporate fundamentals1. We stay active in assessing the evolving economic environment and resulting investment implications.
Start Cautious | ⏰ Q1 2023 → Q2 2023
As the main markets’ concern will be around economic growth deceleration in both the US and Europe, coupled with the risks of profit recession, we believe that investors should maintain a cautious, active stance, look for rotations and enhance hedges2.
(C) Core (S) Satellite (BC) Becoming core
| Start Cautious |
Amundi Funds Pioneer Global Equity |
(C) |
The fund leverages a combination of top-down and bottom-up investment approaches to select quality and sustainable companies at attractive valuations, aiming to capitalise on potential price appreciation, while seeking to mitigate downside risk. |
|
| Start Cautious |
Amundi Funds Global Equity Sustainable Income |
(C) |
The fund seeks to achieve an attractive level of income3 of circa 3.5% and strong risk-adjusted returns over the long term by investing in a diversified* basket of companies characterised by sustainable business models and strong dividend culture. |
|
| Start Cautious |
Amundi Funds US Pioneer Fund |
(C) |
The fund targets opportunities in the US equity space, by seeking out high-quality, attractively priced companies trading below their intrinsic value and with high or improving ESG ratings. |
|
| Start Cautious |
Amundi Funds Global Ecology ESG |
(C) |
This high conviction fund aims to capture attractive opportunities across structural ESG growth themes, including alternative energy, healthy living and IT efficiency. |
Discover fund |
| Start Cautious |
Amundi Funds European Equity Value |
(S) |
The fund seeks to generate positive returns over the long term by selecting European companies showing value and quality characteristics, with a focus on avoidance of permanent capital impairment. |
Discover fund |
| Start Cautious |
Amundi Funds China Equity A Shares |
(C) |
The fund aims to capture opportunities in the Chinese domestic economy over the long term via investing in A shares (onshore equity market), an underexploited area in foreign investors’ portfolios. |
Discover fund |
Gradually adding risk | ⏰ Q2 2023 → Q3 2023
In the second half of the year, subject to an improvement of the economy, investors should consider global equity and selected emerging market equities products. In particular, the faster than expected retreat of China from its zero Covid Policies could be a turning point for the latter4.
(C) Core (S) Satellite (BC) Becoming core
| Gradually adding risk |
Amundi Funds Emerging Markets Equity Focus |
(C) |
The fund aims to capture the expansion of emerging markets with an emphasis on quality by investing in firms with robust corporate governance, strong cash flow production, minimal debt, and a positive incremental return on invested capital. |
|
| Gradually adding risk |
Amundi Funds New Silk Road |
(S) |
This innovative product targets companies expected to benefit from the new drivers of sustainable growth in emerging markets, specifically linked to the development of the New Silk Road ecosystem; namely, the emergence of new and existing trade routes across emerging markets5. |
|
| Gradually adding risk |
Amundi Funds Pioneer US Equity Fundamental Growth |
(S) |
The fund seeks to generate long-term returns by investing in high quality companies available in the growth space, but trading at reasonable valuations. A quality company is characterised by a high return on growth capital, a sustainable competitive advantage and secular grow opportunities. |
|
| Gradually adding risk |
Amundi Funds SBI FM India Equity |
(S) |
The fund seeks to capture the wide array of investment opportunities in India; its flexible approach combines bottom-up stock selection with top-down research to find strong business at a reasonable price, with a preference for large caps. |
|
| Gradually adding risk |
Amundi Funds Euroland Equity |
(C) |
By targeting what we believe are quality Eurozone companies, the fund aims to deliver outperformance in a variety of market climates and similar levels of volatility compared to its benchmark6. |
Discover our Best Idea Themes
Bonds are back
After years of low yields and a challenging 2022, is finally the time to refocus on bonds.
The 60-40 reloaded with an inflation tilt and focus on income
A 60-40 portfolio, that considers inflation and a stable income stream delivery, can represent an advantageous option.
ESG themes & Innovation
ESG and net-zero practices can provide a fertile ground for alpha generation.
*Diversification does not guarantee a profit or protect against a loss.
Sources:
1 Source: Amundi, Global Investment Views, January 2023
2 Source: Amundi, Global Investment Views, January 2023
3 This income guidance can be exceeded or undershot and should not be construed as an assurance or guarantee
4 Source: Amundi, Global Investment Views, January 2023
5 Benchmark is MSCI EMU
6 Source: Amundi as of 30 June 2022
Marketing Communication
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Date of publication: 07 February 2023
Doc Id: 2681175
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