Amundi's Fixed Income Strategies
Amundi's Fixed Income teams provide solutions that help investors build a better financial future.
Over time, we have provided investors with flexibility and choice through expanding our global investment capabilities to cover most of market segments from Govies, High Yield Bonds to Loans.
Amundi, the European leader in Fixed Income investing
Amaury d’OrsayOver the past 20 years Amundi has developed and redefined the investment process behind its Global Fixed Income strategies. Our teams have the insight required to seek out new opportunities and the expertise to develop innovative investment strategies.
Head of Fixed Income
Amundi's Alpha Fixed Income offer
4 reasons to partner with Amundi for Alpha Fixed Income strategies
More than 200 professionals, providing a broad coverage of the global bond markets. Through several investment centers around the world, our teams also benefit from a global and collegial investment culture.
A global platform integrating Risk Management, Trading, Research and Portfolio Management capabilities, offering a deep quality of service to our clients.
Continuous monitoring from the front-office to operations: it includes liquidity simulations with regards to different market conditions and traded volumes for capacity estimated by the dealing desk for each kind of instrument.
Amundi's experienced trading team and its diversified network of brokers provide a privileged liquidity access: low trading costs and consistent primary allocations.
Unique market coverage
More than 200 professionals, providing a broad coverage of the global bond markets. Through several investment centers around the world, our teams also benefit from a global and collegial investment culture.
More than 200 professionals, providing a broad coverage of the global bond markets. Through several investment centers around the world, our teams also benefit from a global and collegial investment culture.
Integrated Investment platform
A global platform integrating Risk Management, Trading, Research and Portfolio Management capabilities, offering a deep quality of service to our clients.
A global platform integrating Risk Management, Trading, Research and Portfolio Management capabilities, offering a deep quality of service to our clients.
Robust and comprehensive risk management
Continuous monitoring from the front-office to operations: it includes liquidity simulations with regards to different market conditions and traded volumes for capacity estimated by the dealing desk for each kind of instrument.
Continuous monitoring from the front-office to operations: it includes liquidity simulations with regards to different market conditions and traded volumes for capacity estimated by the dealing desk for each kind of instrument.
Sound liquidity policy
Amundi's experienced trading team and its diversified network of brokers provide a privileged liquidity access: low trading costs and consistent primary allocations.
Amundi's experienced trading team and its diversified network of brokers provide a privileged liquidity access: low trading costs and consistent primary allocations.
The Alpha Fixed Income range in a glimpse
Bonds
Absolute Return
Amundi’s Absolute Return Fixed Income platform is designed to address the challenges facing investors in the fixed income markets today. An increasingly difficult environment, including low yields and heightened interest rate risk, means investors must re-think their approach to fixed income investing, beyond the ‘traditional’ sense.
Our commitment to our clients is twofold: to provide an extensive range of global, and flexible, investment solutions that address these challenges by delivering strong risk-adjusted returns with an unwavering focus on capital preservation, and providing a best-in-class experience in the Absolute Return fixed income space.
Amundi’s Absolute Return Fixed Income methodology combines a disciplined and transparent investment process with a strict downside risk management framework. Access to a broad investable universe enables us to identify numerous uncorrelated alpha opportunities across a wide range of markets and horizons and allows us to build diverse portfolios that have low to negative correlation with traditional asset classes. We actively avoid biases and reliance on a single source of return in order to maximize investment opportunities. We harness the breadth of research and asset class expertise within Amundi to build our macro view of the world and use that framework to dynamically manage the beta risk in our portfolios based on our level of conviction and expectations for future volatility.
Amundi’s absolute return investment team is global, with members across multiple Amundi investment offices, and integrated within the wider fixed income platform. The team is made up of likeminded and collaborative individuals who share the same investment philosophy, principles, and commitment to our clients.
Our Absolute Return Expertise
Amundi’s Absolute Return Fixed Income platform is designed to address the challenges facing investors in the fixed income markets today. An increasingly difficult environment, including low yields and heightened interest rate risk, means investors must re-think their approach to fixed income investing, beyond the ‘traditional’ sense.
Amundi’s Absolute Return Fixed Income platform is designed to address the challenges facing investors in the fixed income markets today. An increasingly difficult environment, including low yields and heightened interest rate risk, means investors must re-think their approach to fixed income investing, beyond the ‘traditional’ sense.
Our commitment to our clients is twofold: to provide an extensive range of global, and flexible, investment solutions that address these challenges by delivering strong risk-adjusted returns with an unwavering focus on capital preservation, and providing a best-in-class experience in the Absolute Return fixed income space.
Our Approach
Amundi’s Absolute Return Fixed Income methodology combines a disciplined and transparent investment process with a strict downside risk management framework. Access to a broad investable universe enables us to identify numerous uncorrelated alpha opportunities across a wide range of markets and horizons and allows us to build diverse portfolios that have low to negative correlation with traditional asset classes. We actively avoid biases and reliance on a single source of return in order to maximize investment opportunities. We harness the breadth of research and asset class expertise within Amundi to build our macro view of the world and use that framework to dynamically manage the beta risk in our portfolios based on our level of conviction and expectations for future volatility.
Amundi’s Absolute Return Fixed Income methodology combines a disciplined and transparent investment process with a strict downside risk management framework. Access to a broad investable universe enables us to identify numerous uncorrelated alpha opportunities across a wide range of markets and horizons and allows us to build diverse portfolios that have low to negative correlation with traditional asset classes. We actively avoid biases and reliance on a single source of return in order to maximize investment opportunities. We harness the breadth of research and asset class expertise within Amundi to build our macro view of the world and use that framework to dynamically manage the beta risk in our portfolios based on our level of conviction and expectations for future volatility.
Our Team
Amundi’s absolute return investment team is global, with members across multiple Amundi investment offices, and integrated within the wider fixed income platform. The team is made up of likeminded and collaborative individuals who share the same investment philosophy, principles, and commitment to our clients.
Amundi’s absolute return investment team is global, with members across multiple Amundi investment offices, and integrated within the wider fixed income platform. The team is made up of likeminded and collaborative individuals who share the same investment philosophy, principles, and commitment to our clients.
Credit Capabilities: Combine the best credit opportunities
Our capabilities allows to re-allocate among credit sectors and sub-segments provides increased robustness of portfolios in times of uncertainty.
Our strategies are backed by our stable and experienced Credit Analysis Team - one of the largest in Europe, covering US, Emerging and Developed markets. Their top quality research and analysis supports investment teams in designing the most optimal allocation according to the prevailing bond & credit market conditions.
US Fixed Income
Committed to offering the widest scale of opportunistic solutions, Amundi has refined investment process behind US Fixed Income. A dedicated investment team is implemented locally, including 8 Senior FI Portfolio managers with an average of 25 years of industry experience.
This team manages an extended spectrum of assets, backed by sector specialists: liquid markets, securitized credit and corporate credit professionals. It focuses on security selection and sector rotation and implements a consistent investment approach across multiple U.S. fixed income sectors, combining proprietary quantitative valuation tools with in-depth fundamental investment analysis and market experience to identify attractive sectors and securities.
Our established platform is renowned for its long-standing expertise in institutional Fixed Income strategies:
- Multi-Sector Fixed Income: core fixed income strategies & US treasuries, including total return to boost return potential
- Asset-Backed Strategies: from high credit quality to agency mortgage-backed securities and securitised credit to obtain a high level of current income and reduce interest rate risk
- Credit Strategies: relative value, global or US high yield, corporate credit allowing to invest in Investment Grade and High Yield as well as mortgage-backed securities and emerging markets corporates.
EM Fixed Income
Amundi applies an integrated and research led approach to investing in emerging markets, looking across equity and fixed income. Understanding government bonds markets enables a better understanding of growth and inflation. Rates help us understand systemic risk. Credit and equity markets are symbiotic but not always efficient. Understanding the full cost of capital creates opportunity.
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Our strategies:
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| Source: Amundi Asset Management, as of December 31, 2020 |
Fixed Income Allocation
Amundi offers a comprehensive range of solutions addressing the recurring needs of our investors.
Amundi's teams offer structural and tactical strategies for all allocation purposes.
Fostering innovation in Fixed Income field
Willing to seek out value in the largest scale of fixed income instruments, Amundi has developed an in-depth expertise in innovative strategies such as Quantamental, Credit Continuum and Liability Driven Investment (LDI) strategies.
Green Fixed Income
« Greening » fixed income markets is critical if the financial sector wants to successfully embrace the Paris climate agreements goals.
With the European Investment Bank, Amundi’s launching a green credit continuum program which aims to provide €1 bn for the development of green fixed income in Europe.
With the Asian Infrastructure Investment Bank, Amundi developed an emerging market corporate development strategy focusing on real economy issuers of labeled and unlabeled green bonds.
With the International Finance Corporation, Amundi launched the largest green bond fund of the market to address the costly gap between the low-yield environment in developed markets that investors face and the extensive green infrastructure financing needs in developing countries. This strategy received several awards in 2019.
Quantamental
Amundi offers innovative active Fixed Income solutions, at the crossroad between Quantitative and Fundamental analysis. This approach is the concrete answer to clients’ needs for diversification and current market conditions (low rates, increasing number of bond issuers…) illustrated in our working paper: Traditional and Alternative Factors in Investment Grade Corporate Bond Investing.
This is an unbiaised rule-based investment approach to make the most of the market trends and new alternative factors.
Credit Continuum
Amundi aims to make the most of the whole credit spectrum. Going beyond traditional credit cliffs, we offer a flexible European credit solution with potential attractive yield.
Investors have to adapt to a context of higher uncertainty, including low rate and high duration risk.
The strategy:
- Includes private debt in the credit allocation
- Invests in a wide investment universe
- Takes advantage of attractive European features
- Combines the best credit opportunities
Amundi, a leading player in Responsible Investment Fixed Income
Amundi has developed an in-depth expertise in strategies such as ESG Fixed Income, willing to seek out value in the largest scale of fixed income instruments.
Amundi was one of the first Asset Managers to be involved in Responsible Investment. Our commitment to Responsible Investment dates back to 1989 with the launch of one of the first ethical investment funds. In 2004 Amundi was the first European Asset manager to launch an open-ended SRI Credit fund. Being a responsible financial actor is one of our teams’ daily stance. This commitment is translated into both our investment processes as well as our range of investment solutions.
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Responsible investment offeringAmundi offers to all client segments a wide range of open-ended funds and tailor-made Responsible Investment solutions that incorporate ESG factors into investment decisions. Read more |
1 Source: Amundi, as of June 30, 2021
2Low duration strategies: short-term bonds maturing predominantly before five years. Our teams are managing a comprehensive range a low duration solutions ranging form directional IG & HY strategies, FRN-like strategies and Absolute Return stragegies.
3 ABS : an asset-backed security (ABS) is a financial security collateralized by a pool of assets such as loans, leases, credit card debt, royalties or receivables. Amundi is a leading player in this field. In 2014, the European Central Bank (ECB) appointed our team to conduct its Asset-Backed Securities Purchase Programme (ABSPP).
4Subordinated bond : a subordinated bond is a security that is senior to equity securities and junior to other securities in terms of debt servicing. Amundi has expertise in managing two strategies in this field – globally and in Europe.
5Unconstrained strategies : unconstrained investing, or flexible investin, allows the fund managers to consider a broad range of investment opportunities without the constraints of following a benchmark (i.e. absolute return strategies). Amundi is a growing player in this field, with an extensive range of global and flexible, investment solutions in the absolute return fixed income space.
6Rule-based strategies : a rule-based strategy based itself on data computing and analysis. Amundi Fixed Income teams leverages on its proprietary tools to develop and launch Risk Premia, Value Factor and multifactor strategies. These strategies show enhanced return/risk profiles as compared to traditional benchmarks.
7Credit continuum : a Credit Continuum strategy aims to make the most of the whole Credit spectrum ranging from liquid Corporate Bonds (both Investment Grade & High Yield) to lesser liquid assets including Secured Assets, Private Debt, and growth assets such as Infrastructure or Shipping. Our teas have designed different credit continuum strategies including an open-ended solution and a Green Credit Continuum.
