Best Ideas: The 60-40 reloaded with an inflation tilt and focus on income
Marketing Communication
The 60-40 reloaded with an inflation tilt and focus on income
Markets are experiencing an environment of relatively high inflation and higher interest rates, not witnessed in the past 40 years1. As the macroeconomic conditions are still uncertain, we believe that a new “60-40 reloaded” portfolio allocation that prioritises real returns, takes into account inflation and focuses on income solutions may help investors meet their objectives.
Valid for the full year | ⏰ Q1 2023 → Q4 2023
Absolute Return
Geopolitical tensions, high inflation and declining global prospects are challenging factors for investors across the globe. In this scenario, investors may be looking for all-weather solutions with the aim of protecting their capital from inflation at a time of decelerating economic growth. Including an absolute return strategy in your portfolio might offer some protection2.
(C) Core (S) Satellite (BC) Becoming core
| Valid for the full year |
Amundi Funds Multi-Strategy Growth |
(C) |
The fund seeks to generate positive returns with low volatility, targeting cash + 5-6% p.a . (gross)3 over the medium term by investing across a range of traditional and non-traditional asset classes via directional and non-directional investment strategies. |
|
| Valid for the full year |
Amundi Funds Multi-Asset Real Return |
(S) |
The fund seeks to deliver positive real returns over the medium-term, across inflation regimes, with a moderate risk profile; idea generation is driven by a multi-scenario, inflation-aware, approach. |
|
| Valid for the full year |
PI Solutions – Amundi REALTI |
(S) |
This mutual, ELTIF4 fund provides easy access to commercial real estate in Europe, which is generally inaccessible to private investors; the portfolio is invested in A-grade5 properties, characterised by high environmental standards, technical qualities and energy performance. |
|
| Valid for the full year |
Lyxor/Tiedemann Arbitrage Strategy Fund |
(S) |
The fund is a UCITS liquid alternative product that gives access to an absolute return merger arbitrage strategy; that is, it invests in announced complex M&A deals6 with wide spreads, with a focus on short-term events (up to 30 days) within the merger arbitrage process. |
Discover fund |
| Valid for the full year |
Lyxor Epsilon Global Trend Fund |
(S) |
The fund is a UCITS Liquid Alternative product that aims to deliver absolute and uncorrelated returns by adopting a “trend-following” approach over the medium to long term. Its objective is therefore to detect up and down price trends in global markets and take long or short positions accordingly. |
Discover fund |
| Valid for the full year |
Lyxor/Bridgewater Core Global Macro Fund |
(S) |
The fund is a UCITS Liquid Alternative product that aims to generate absolute returns with low correlation to traditional asset classes over time, leveraging on its multi-asset class nature and flexibility to be long, short, or market neutral. |
Discover fund |
Valid for the full year | ⏰ Q1 2023 → Q4 2023
Multi-Asset Conservative
Multi-asset conservative solutions can provide appealing opportunities for investors seeking to achieve a sustained capital growth while maintaining a limited exposure to riskier sectors.
(C) Core (S) Satellite (BC) Becoming core
| Valid for the full year |
Amundi Funds Multi-Asset Sustainable Future |
(C) |
The fund aims to capture attractive opportunities across European government and corporate bonds and global equities (max 40% equities) via a conservative, ESG multi asset approach to investing. |
|
| Valid for the full year |
Amundi Funds Global Multi-Asset Conservative |
(C) |
The fund seeks to provide a conservative, multi-asset alternative to bond investors through a flexible allocation to diverse bond sectors and a limited participation in equities (max. 30%)7; it targets competitive risk-adjusted returns using a low volatility budget ranging between 5-7%. |
Valid for the full year | ⏰ Q1 2023 → Q4 2023
Income
We believe that achieving real income will be a key element for investors seeking to mitigate the negative effects of inflation. Income solutions may vary depending on the time horizon and investment approach identified by investors - fixed income, multi-asset and equity asset classes seek to address different needs8.
(C) Core (S) Satellite (BC) Becoming core
| Valid for the full year |
Amundi Funds Pioneer Income Opportunities |
(C) |
This global, multi-asset fund aims to deliver an attractive level of income and capital appreciation as a secondary objective over the long-term; via a value-based, dynamic investment approach it looks for opportunities across multiple asset classes and geographies. |
|
| Valid for the full year |
Amundi Funds Global / Euro Multi-Asset Target Income |
(C) |
These funds seeks to achieve a sustainable income at low volatility in their respective investable regions through an active multi-asset approach; income is generated through dividends, coupons and option writing. |
|
| Valid for the full year |
Amundi Funds Pioneer Strategic Income |
(C) |
The fund is an actively managed, multi-sector bond portfolio that seeks high current income with volatility similar to a typical core bond strategy, targeting potential diversification* benefits by investing in lower-correlated fixed income asset classes. |
|
| Valid for the full year |
Amundi Funds Real Assets Target Income |
(C) |
The fund aims to achieve an attractive, stable income stream and to generate returns in excess of inflation by investing actively in different asset classes. It is a globally diversified* strategy with focus on liquid investments sensitive to inflation. |
Valid for the full year | ⏰ Q1 2023 → Q4 2023
Wealth Accumulation
Investors looking to preserve the purchasing power of their capital in a period of high inflation could consider solutions tailored to increase and protect their wealth over the long term, seeking to minimize the risk of capital loss.
(C) Core (S) Satellite (BC) Becoming core
| Valid for the full year |
Amundi Funds Global Multi-Asset |
(C) |
The fund aims to be a moderate risk, balanced multi-asset solution offering the potential to mitigate drawdowns through active management of market, liquidity and credit risks. It targets competitive risk-adjusted returns using a volatility budget ranging between 8-10%9. |
|
| Valid for the full year |
First Eagle Amundi International Fund |
(C) |
This flexible, broadly diversified* equity fund seeks to grow the purchasing power of capital over the long-term, focusing on minimizing the risk of permanent capital loss; it invests primarily in global equities through a benchmark-agnostic value approach, that targets quality business trading at a material discount to their estimated intrinsic value (“margin of safety”). |
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.
Equity seeks entry point opportunities
Equity, in our view, will offer attractive entry points during the year, especially in selected regions.
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, as of November 2022
2 Source: Amundi, Absolute return strategies in an inflationary context, September 2022
3 The target return shown net of fees would be inferior. The target return is based on normal market conditions. The target is not a reliable indicator of future performance. Targets can be exceeded or undershot and should not be construed as an assurance or guarantee
4 An ELTIF fund is an investment solution in the real European economy, seeking to promote a smart, sustainable and inclusive growth
5 High quality properties located in premium areas
6 Invest in global securities that are or may become subject to a tender offer, merger, liquidation, recapitalization, spin-off, proxy contest, exchange offer, leveraged buyout or bankruptcy
7 Source: Amundi, as of 31 July, 2022. Given for illustrative purpose only. May be changed without prior notice
8 Source: Amundi Convictions: Income as a source of resilience, 22 November 2022
9 Internal guidelines and not prospectus limits and may be subject to change over time and should not be construed as an assurance or guarantee.
Marketing Communication
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Date of publication: 07 February 2023
Doc Id: 2681175
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