Convictions
Summary
Eyes on Europe: optimism ahead
Europe is at a turning point. Although economic growth is currently modest, ongoing reforms and a changing political landscape are poised to unlock stronger future expansion.
The strategic autonomy policy choices of the last two years - from energy and critical raw material security to defence and industrial cooperation and digital transformation - have built the foundations for a sustainable, long-term economic momentum across the region.
A clear pathway to end Russian pipeline and LNG imports by early 2028 and the exploration of pooled purchasing and stockpiling for selected raw materials highlights the ongoing strategic shift. While the expansion of the artificial intelligence (AI) theme beyond the US will further enhance Europe’s appeal in 2026.
Further reasons for optimism include potential progress on European Union institutional reform, a shift in the German fiscal stance to support growth as well as the realignment of industrial policy around energy, infrastructure and defence.
Reform momentum
The EU’s stance on regulation continues to evolve and policymakers are no longer attempting to dismantle legacy frameworks and are instead focusing on easing friction in order to ensure more seamless interaction. This has resulted in adjustments to timing and scope in order to maintain direction.
Simultaneously, there is renewed attention on the structure and function of the Single Market, including removing barriers in services, improving cross border data flow and standard setting to facilitate scale. Simplification is paramount and 2026 is expected to see greater focus on consistent rule enforcement and shortened administrative processes.
AI activation
The technology capex cycle remains central to the rapid development of AI capabilities. The unprecedented investment in the technology means it continues to move from a general-purpose promise of improvement to being embedded across numerous sectors. The constraint to date has been around infrastructure including data quality and computational access and skills, but that is no longer the case. Going forward the challenge for corporates is to successfully ramp up their use of AI tools to provide tangible improvements.
Scaling defence investment
Defence rearmament across the Euro bloc is advancing unevenly. Although there a target for 40% joint procurement by 2030, legal carve-outs and national considerations continue to dominate decision making.
The challenge for 2026 is whether EU member states can translate an acknowledged shared threat into shared spend and timelines. The looming measurable objective means that the central criteria to decision making is shifting from symbolism to readiness and production capacity as the debate shifts to delivery.
Economic backdrop
As the global economy transitions to a new innovation led regime and as global geopolitics enter a phase of controlled disorder, global GDP is expected to moderate at 3% in 2026. In the US, growth held up in 2025 despite policy uncertainties as expenditure in tech and AI-related sectors outpaced consumer spending. This will likely continue support the US economy in the coming quarters and provide a floor to growth.
In Europe, sustaining growth momentum hinges on resilient domestic demand, continued monetary policy support and timely, effective policy implementation. While higher debt levels and fiscal rules mean the overall fiscal stance will remain broadly neutral, easing inflationary pressure, moderating wage growth and below potential economic activity should facilitate European central banks maintaining accommodative policy settings.
Fixed income optimism
Support for European bonds will come from the European Central Bank, which we think has scope to follow the US Federal Reserve’s lead and cut rates to a terminal rate of 1.5% by mid-2026. A narrowing yield differential between 10Y Bunds and US Treasuries and expectations of rate cuts will favour European bonds versus the US. They will also benefit from rising demand from international investors willing to diversify into an expanding market with more predictable fiscal rules. In the European market, we remain even more optimistic about peripheral governments and we also see opportunities in investment-grade credit.
Mid and small-cap equities appeal
As domestic demand is likely to be a key driver of economic growth, we favour small and mid-cap equities as roughly two-thirds of sales in this sector are generated domestically. These sized companies are also less exposed to external shocks and US tariffs and are more exposed to Germany’s plan and Ukraine’s reconstruction.
Further catalysts to their outperformance is their multi-year low valuation relative to large-caps and potential easing by the ECB. Increased infrastructure spending due to the green transition and demand for increased investment in AI should also drive opportunities. At a sector level, increased security spending will boost defence while financials will benefit form a steeper yield curve.
Amundi’s comprehensive range of solutions
As Europe embarks on a path of economic growth over the medium term, investors are presented with a unique opportunity to capitalize on the evolving landscape. With our extensive capabilities across equity and fixed income, at Amundi we offer a comprehensive range of investment solutions to support clients in meeting their diverse needs.
| Amundi Funds Europe Equity Income Select |
| Amundi Funds European Equity | |
| Amundi Funds European Equity Small Cap |
| CPR Invest - European Strategic Autonomy | |
|
| Amundi Stoxx Europe 600 UCITS ETF |
| Amundi Funds Euro Corporate Bond Select |
| Amundi S.F. - Diversified Short-Term Bond Select | |
|
| Amundi Funds Euro Subordinated Bond Responsible |
| Amundi EUR Corporate Bond UCITS ETF |
| Amundi Funds Euro Multi-Asset Target Income |
Latest News
2026 Investment Outlook
The views expressed in this presentation are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any of Amundi’s strategies. The sources used throughout the page are from the Amundi Investment Institute.
Marketing Communication - 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.
This material has not been submitted for regulatory approval and is solely for issue in permitted jurisdictions and to persons who may receive it without breaching applicable legal or regulatory requirements. The information contained in this document is confidential and shall not, without prior written approval of Amundi Ireland Limited (“Amundi”), be copied, reproduced, modified, or distributed, to any third person or entity in any country.
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-docume….
Investment involves risk. Investment return and the principal value of an investment in the Funds or other investment product may go up or down and may result in the loss of the amount originally invested. The decision of an investor to invest in the Funds should take into account all the characteristics or objectives of the Funds. Past performance does not predict future results. Investment return and the principal value of an investment in the Funds or other investment product may go up or down and may result in the loss of the amount originally invested. All investors should seek professional advice prior to any investment decision, in order to determine the risks associated with the investment and its suitability. It is the responsibility of investors to read the legal documents in force in particular the current prospectus for each Fund. Subscriptions in the Funds will only be accepted on the basis of their latest prospectus in English or in local language in EU countries of registration, and/or the Key Investor Information Document / Key Information Document (“KIID”/ “KID” available in local language in EU countries of registration) which, together with the latest annual and semi-annual reports may be obtained, free of charge, at the registered office of Amundi Luxembourg S.A. or at www.amundi.lu. In Italy, this documentation is available at www.amundi.it. In Ireland, this documentation is available at www.amundi.ie or, for KBI Funds ICAV, at www.kbiglobalinvestors.com. Information relating to costs and charges of the Funds may be obtained from the KIID/KID.
The performance data do not take account of the commissions and costs incurred on the issue and redemption of units/shares of the Funds.
Information on sustainability-related aspects can be found at https://about.amundi.com/Metanav-Footer/Footer/Quick-Links/Legal-docume….
In EEA Member States, the content of this document is approved by Amundi for use with Professional Clients (as defined in EU Directive 2004/39/EC) only and shall not be distributed to the public. Amundi Ireland Limited is authorised and regulated by the Central Bank of Ireland. KBI Global Investors Ltd is regulated by the Central Bank of Ireland and deemed authorised and regulated by the Financial Conduct Authority. The nature and extent of consumer protections may differ from those for firms based in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website. Société Générale, Dublin Branch 3rd Floor, IFSC House, IFS, Dublin 1 is the facilities agent for those sub-funds of Amundi Funds, First Eagle Amundi registered in Ireland.
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.
In France, a free prospectus is available from Amundi Asset Management, 91-93 boulevard Pasteur -75015 Paris - France - 437 574 452 RCS Paris France or from the centralisateur of the Funds which in the case of Amundi Funds, Amundi Index Solutions and CPR Invest SICAV is CACEIS Bank SA, 1-3 place Valhubert, 75013 Paris and in the case of First Eagle Amundi SICAV is Société Générale, 29 Boulevard Haussmann, 75008 Paris.
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. +49.89.99.226.0). 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.
In Chile and Peru, this document is approved for use by Administradora de Fondos de Pensiones/Pension Fund Administrators and other institutional investors.
In Mexico, this document is approved for use with institutional investors. It may not be distributed to third parties or to the public.
In Singapore, this document is provided solely for the internal use of distributors and financial advisors and is not to be distributed to the retail public in Singapore. Investors should read the Singapore information memorandum of the Funds before deciding to invest in the Funds. Distribution occurs through Amundi Singapore Limited, 80 Raffles Place, UOB Plaza 1, #23-01, Singapore 048624 and/or the Funds’ authorised distributors. Amundi Singapore Limited is regulated by the Monetary Authority of Singapore (“MAS”). Certain sub-funds of the Funds are notified as restricted schemes under Section 305 of the Securities and Futures Act 2001 of Singapore (“SFA”) and the Sixth Schedule to the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005 (“Restricted Schemes”). This document shall be construed as part of the Singapore information memorandum of the Restricted Schemes (the "Singapore IM"), which shall be deemed to include and incorporate the prospectus of the Restricted Schemes, any supplement to the prospectus relating to the Restricted Schemes, this document and any other document, correspondence, communication or material sent or provided to eligible participants in relation to the Restricted Schemes from time to time. Accordingly, this document must not be relied upon or construed on its own without reference to and as part of the Singapore IM. Investors should read the relevant Singapore IM before deciding to invest in the Restricted Schemes. The units/shares offered under the Restricted Schemes as set out in the relevant Singapore IM are not authorised or recognised by the MAS and are not allowed to be offered to the retail public. Accordingly, this document and the material contained within, may not be circulated or distributed, nor may the relevant units/shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 304 of the SFA, (ii) to a relevant person pursuant to Section 305(1), or any person pursuant to Section 305(2), and in accordance with the conditions specified in Section 305 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. By accepting receipt of this document and any other document or material issued in connection with the offer or sale of the shares/units, a person (within the meaning of Singapore law) in Singapore represents or warrants that person is entitled to receive such document in accordance with the restrictions set forth above and agrees to be bound by the limitations contained herein. Distribution/dividends (if applicable) are not guaranteed unless otherwise stated in the dividend policy for the relevant share class/class contained in the relevant Singapore IM. This document and the Singapore IM is not a prospectus as defined in the SFA and, accordingly, statutory liability under the SFA in relation to the content of prospectuses does not apply, and the offeree/an investor should consider carefully whether the investment is suitable for him. The MAS assumes no responsibility for the contents of this document. This document has not been reviewed by the MAS.
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 first use: 5 December 2025
Doc ID: 5041114
© 2025 Morningstar. All Rights Reserved. The information, data, analyses and opinions (“Information”) contained herein: (1) include the proprietary information of Morningstar; (2) may not be copied or redistributed; (3) do not constitute investment advice; (4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and (6) may be drawn from fund data published on various dates. Morningstar is not responsible for any trading decisions, damages or other losses related to the Information or its use. Please verify all of the Information before using it and do not make any investment decision except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up.
Lipper is not responsible for the accuracy, reliability or completeness of the information that you obtain. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates. ©Thomson Reuters 2024. All rights reserved.
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.