Marketing Communication - For Professional Clients Only
Seek resilience in equities
Historically, when the Fed rates plateau, equity has risen only if there was no recession ahead, or in case of a strong disconnect between valuations and earnings potential. Otherwise, with these premises and after some resistance, the scenario for equities tends to become more challenging. Considering our expectations of a mild recession and the overvaluations of a number of stocks in the US, we favour a more balanced profile entering 2024, and potentially review this position only after Fed’s cuts announcements.
We maintain a selective approach and explore value, quality, dividend-oriented names in developed and emerging markets.
Our Best Ideas fund selection
Amundi Funds Pioneer Global Equity
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.
The fund seeks to achieve an attractive level of income1 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.
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.
The fund aims to deliver strong returns over the long term, targeting businesses characterized by sustainable competitive advantages, and with the potential to deliver above-average earnings and free cash flow growth over the long-term.
The fund seeks to outperform global equity markets by investing in companies which either establish or benefit from disruptive business models. It adopts a unique, conviction-based investment approach to the entire spectrum of disruption, targeting megatrends.
The fund aims to capture the unrealised potential of small and mid-sized companies in Europe, which are selected using a rigorous stock-picking process based on the analysis of fundamentals, capital structure, corporate governance and ESG materiality.
The current market framework remains uncertain entering into 2024; starting with a conservative allocation including hedges should be favoured, as well as adding diversification* by investing in alternative assets and strategies (gold, volatility).
Energy transition remains the top focus when it comes to ESG. Other relevant themes include sustainable infrastructure, water, sustainable buildings, green bonds, ageing population, AI and water management.
*Diversification does not guarantee a profit or protect against a loss.
Source of investment views and convictions: Amundi Investment Institute, “2024 Investment Outlook – Steering through turning tides”, “Global Investment Views – January 2024”
1 This income guidance can be exceeded or undershot and should not be construed as an assurance or guarantee. 2 Source: Amundi as of 1 January 2024. Benchmark is MSCI EMU.
For Professional Clients Only
This material is provided to Professional Clients, including financial intermediaries, and is not intended for and should not be provided to the public.
This is a marketing communication. Please refer to the prospectus / information document and to the KID/KIID before making any final investment decisions
This document contains information about investment services provided by Amundi group companies or undertakings for collective investment in transferable securities or open-ended umbrella Irish collective asset- management vehicles (the “Funds”) established under the laws of Luxembourg and authorised for public distribution by the Commission de Surveillance du Secteur Financier or the laws of Ireland and authorized for public distribution by the Central Bank of Ireland. The management company of:
• Amundi Funds, Amundi Fund Solutions, First Eagle Amundi and Amundi Index Solutions is Amundi Luxembourg S.A., 5, allée Scheffer, L-2520 Luxembourg;
• CPR Invest is CPR Asset Management, 91-93 Boulevard Pasteur, 75015 Paris, France; • KBI Funds ICAV and Amundi Fund Solutions ICAV is Amundi Ireland Limited, 1 George’s Quay Plaza, George’s Quay, Dublin 2, Ireland.
This material is for information purposes only, is not a recommendation, financial analysis or advice, and does not constitute a solicitation, invitation or offer to purchase or sell any the Funds or services described herein in any jurisdiction where such offer, solicitation or invitation would be unlawful.
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The Funds described in this document may not be available to all investors and may not be registered for public distribution with the relevant authorities in all countries.
Please note that the management company may decide to terminate the arrangements made for the marketing of its collective investment undertakings in a Member State of the EU in respect of which it has made a notification. A summary of information about investors’ rights and collective redress mechanisms can be found in English on the regulatory page at https://about.amundi.com/Metanav-Footer/Footer/Quick-Links/Legal-documentation.
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In the United Kingdom (the “UK”), this marketing communication is being issued by Amundi (UK) Limited (“Amundi UK”), 77 Coleman Street, London, EC2R 5BJ, UK. Amundi UK is authorised and regulated by the Financial Conduct Authority (“FCA”) and entered on the FCA’s Financial Services Register under number 114503. This may be checked at https://register.fca.org.uk/ and further information of its authorisation is available on request. This marketing communication is approved by Amundi UK for use with Professional Clients (as defined in the FCA’s Handbook of Rules and Guidance (the “FCA Handbook”) and shall not be distributed to the public. Past performance is not a guarantee or indication of future results. Amundi Funds SICAV, First Eagle Amundi SICAV, Amundi Index Solutions, CPR Invest SICAV, KBI Funds ICAV and Amundi Fund Solutions ICAV are recognised schemes under the FCA’s Temporary Marketing Permission Regime . Where a fund is an unregulated collective investment scheme under the Financial Services and Markets Act 2000 (the “FSMA”), this marketing communication is addressed only to those persons in the UK who qualify as non-retail clients (Professional Clients or Eligible Counterparties) as set out in the FCA’s Handbook, Conduct of Business Sourcebook 4.12B - “Promotion of non-mass market investments”, as amended from time to time, and thereby fall with an exemption from the restrictions in Section 238 FSMA. This marketing communication must not be relied on or acted upon by any other persons for any purposes whatsoever. Potential investors in the UK should be aware that none of the protections afforded by the UK regulatory system will apply to an investment in a Fund and that compensation will not be available under the UK Financial Services Compensation Scheme.
In Switzerland, this document is for Qualified Investors (as defined in Swiss Collective Investment Schemes Act of 23 June 2006 as amended or supplemented) use only and shall not be offered to the public. The Representative and Paying Agent for Funds registered for public offering in Switzerland are, in respect of Amundi Funds, First Eagle Amundi and Amundi Index Solutions: Representative - CACEIS (Switzerland) SA and Paying Agent - CACEIS Bank, Nyon Branch both at 35 Route de Signy, Case postale 2259, CH-1260 Nyon; KBI Funds ICAV: Representative – ACOLIN Fund Services AG, Affolternstrasse 56, CH-8050 Zurich and Paying Agent – NPB Neue Privat Bank AG, Limmatquai 1, CH-8001 Zurich. Free copies of the prospectus, key investor information documents, annual and semi-annual reports, management regulations and other information are available at the representative’s address shown above.
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In Germany, for additional information on the Fund, a free prospectus may be requested from Amundi Deutschland GmbH, Arnulfstr. 124-126 80636 Munich, Germany (Tel. +188.8.131.52.0). The information and paying agent for Amundi Fund Solutions ICAV is Marcard Stein & CO AG, Ballindamm 36, 20095 Hambourg, Germany.
In Austria the paying agents for Funds registered for public distribution are, in respect of Amundi Fund Solutions: UniCredit Bank Austria AG, Rothschildplatz 1, A-1020 Vienna; Amundi Funds, Amundi Index Solutions and First Eagle Amundi: Société Générale, Vienna Branch, Prinz Eugen Strasse 8 - 10/5/Top 11, A-1040 Vienna; CPR Invest: Raiffeisen Bank International AG, Am Stadtpark 9, A-1030 Wien; and KBI Funds ICAV: Erste Bank der oesterreichischen Sparkassen AG, Am Belvedere 1, A-1100 Vienna.
In Spain, the Funds are foreign undertakings for collective investment registered with the CNMV and numbered Amundi S.F. (493); Amundi Fund Solutions (1333); Amundi Fund Solutions ICAV (1969); Amundi Funds (61) First Eagle Amundi (111); Amundi Index Solutions (1495); CPR Invest (1564) and KBI Funds ICAV (1248). Any investment in the Funds or their respective sub-funds must be made through a registered Spanish distributor. Amundi Iberia SGIIC, SAU, is the main distributor of the Funds in Spain, registered with number 31 in the CNMV's SGIIC registry, with address at Pº de la Castellana 1, Madrid 28046. A list of all Spanish distributors may be obtained from the CNMV at www.cnmv.es. Units/shares may only be acquired on the basis of the most recent prospectus, key investor information document and further current documentation, which may be obtained from the CNMV.
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This information is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities or services in the United States or in any of its territories or possessions subject to its jurisdiction to or for the benefit of any U.S. Person (as defined in the prospectus of the Funds). The Funds have not been registered in the United States under the Investment Company Act of 1940 and units/shares of the Funds are not registered in the United States under the Securities Act of 1933.
This document is not intended for and no reliance can be placed on this document by persons falling outside of these categories in the above-mentioned jurisdictions. In jurisdictions other than those specified above, this document is for the sole use of the professional clients and intermediaries to whom it is addressed. It is not to be distributed to the public or to other third parties and the use of the information provided by anyone other than the addressee is not authorised.
This material is based on sources that Amundi considers to be reliable at the time of publication. Data, opinions and analysis may be changed without notice. Amundi accepts no liability whatsoever, whether direct or indirect, that may arise from the use of information contained in this material. Amundi can in no way be held responsible for any decision or investment made on the basis of information contained in this material
Date of publication: 5 February 2024 Doc ID: #3369071
The Funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such Funds or securities or any index on which such Funds or securities are based. The offering documents of the Funds contain a more detailed description of the limited relationship MSCI has with Amundi and any relevant Funds.