Best Ideas: Seek resilience in equities

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.

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Amundi Funds Global Equity Sustainable Income 

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.

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Amundi Funds European Equity Value 

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.

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Amundi Funds Euroland Equity 

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 benchmark2.

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Amundi Funds Pioneer US Equity Fundamental Growth 

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.

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Amundi Funds Polen Capital Global Growth

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.

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CPR Invest - Global Disruptive Opportunities

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. 

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Amundi Funds European Equity Small Cap

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.

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Return to Best Ideas key themes

Discover our Best Ideas Themes   

Bonds’ appeal amid peaking rates

As the growth picture deteriorates, with inflation coming down, investors should price in rate cuts for 2024. In this scenario, owning duration could be rewarding, while timing remains essential.

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EM winners in a fragmented world

In an environment of weak global demand, the premium in favour of EM vs DM is projected to continue widening. In our view, there are structural factors at play that support EM.

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Dynamic asset allocation when tides are turning

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).

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Energy transition and structural themes

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.

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*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”

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.

Marketing Communication

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Date of publication: 5 February 2024
Doc ID: #3369071

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