A Multi-Asset Approach to the Income Challenge

Monday 16 October 2023

Investment Talks

A Multi-Asset Approach to the Income Challenge

October 2023 | We believe that equity markets are more risky than they have been over the last 10 years. Valuations are stretched, monetary authorities are much less supportive, and governments have probably already reached the limits of the fiscal stimulus they can provide. Given these challenges, we believe investors can potentially generate income and capital appreciation by employing a global, multi-asset approach with the flexibility to invest in all geographies and asset classes. Importantly, adoption of a more nuanced definition set of asset classes, or micro-asset classes without constraint of benchmark orientation, affords investors the potential to identify attractive opportunities in the midst of broader categories where the top level risk and reward characteristics may appear to be less favorable.

01 | We believe a global multi-asset approach with the flexibility to deploy capital across all geographies and asset classes can better equip investors to generate income while balancing the risks of today’s markets.

02 | The adoption of a more granular approach toward asset class definition offers the potential to identify attractive opportunities many investors are unable to recognize.

03 | A world with higher interest rates and persistently elevated rates of inflation motivates us to favor assets we believe possess deep valuation support and strong free cash flow generation.

A Multi-Asset Approach to the Income Challenge 2023_10_16

Important Information

Unless otherwise stated, all information contained in this document is from Amundi Asset Management as of September 30, 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the [author] and not necessarily Amundi Asset Management and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product or service. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not indicative of future results. Amundi US is the US business of Amundi Asset Management.