Amundi Funds Protect 90
Invest with a safety net
An actively managed multi-asset fund from Amundi comes with a partial capital guarantee, which ensures it cannot fall below 90% of the highest net asset value.
With interest rates on cash savings accounts hovering just above zero and unlikely to rise higher any time soon, one way to achieve potential returns is to invest in financial markets. Yet many people do not have the appetite for the extra risks involved or may have been disappointed with returns in the past.
To overcome these concerns and offer the chance of potential returns, Amundi has designed a fund with a partial capital protection facility. Amundi Funds Protect 90 invests in a flexible and active way in a wide universe of opportunities across all asset classes and geographical regions. This diversified strategy helps to spread risk and smooth performance over the long term.
The fund’s unique selling point is a floor of protection equal to 90% of the highest net asset value (NAV) recorded since inception. The NAV can never fall below this level, regardless of performance in the underlying markets. The level of protection increases each time the fund’s NAV reaches a new high, and if the NAV falls during difficult market conditions, the partial capital guarantee is already locked in and the floor remains unchanged.
Secure part of the capital
Active management gives the investment team the flexibility to adapt to changing market conditions, which helps to partially protect capital as part of a cautious investment strategy. When market conditions are favourable, the fund allocates more to risky assets, such as equities and corporate bonds. The risk level of the portfolio is reduced during bear markets by shifting towards less risky assets (1). In the event of a sharp market downturn, the sub-fund may invest 100% of its assets in money market instruments. In such a case, it would not take advantage of the performance potential of dynamic assets.
However, it is the partial capital protection facility that positions this fund towards the lower end of the investment strategies available in terms of risk. When market conditions are favourable investors enjoy the increased level of protection as the NAV rises, locking in the gains. If market conditions deteriorate and the fund suffers a decline, the protection facility guarantees investors’ capital will not fall below 90% of the highest NAV recorded since inception.
Protect against market downturns
Although designed with the idea of helping financial advisers encourage their most cautious clients to invest in financial markets, Amundi Funds Protect 90 has proved popular in other investment planning situations. The fund is also being used as a transitional investment by investors who want to ride out the current market conditions with a lower-risk strategy.
This strategy has already demonstrated its ability to deliver steady growth, while offering a degree of comfort that other funds cannot provide. Since 2008, Amundi has successfully launched similar strategies for its European and Asian partner networks. As people continue to struggle with low interest rates, Amundi offers a way to seek higher returns without taking on too much additional risk.
Although designed with the idea of helping financial advisers encourage their most cautious clients to invest in financial markets, Amundi Funds Protect 90 has proved popular in other financial planning situations.
Isabelle de Malherbe
Head of product specialists Structured solutions
Locking in performance
The level of protection increases each time the sub-fund’s net asset value (NAV) reaches a new high point. It is then locked in and cannot fall if the NAV falls.
Simulations provided for information purposes. They in no way serve as an indication of future performance of Amundi Funds Protect 90 or a guarantee of future returns.
(1) For further details on the investment policy, please refer to the Amundi Funds Prospectus.
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AMUNDI FUNDS PROTECT 90 is a compartment of the SICAV AMUNDI FUNDS constituted and compliant with part I of the Luxembourg law of 17 December 2010. This product has been authorised by the Commission de Surveillance du Secteur Financier of Luxembourg on 27 June 2016. For all other jurisdictions, investors should seek the advice of a professional advisor in order to determine the suitability of the investment, because restrictions might apply.
Subscriptions in AMUNDI FUNDS PROTECT 90 will only be accepted on the basis of its latest key investor information document and the full prospectus, the latest annual and semi-annual reports and the articles of incorporation of AMUNDI FUNDS that may be obtained, free of charge and on demand, at the registered office of the managing company or of Amundi Asset Management.
The value of, and any income from, an investment in AMUNDI FUNDS PROTECT 90 can decrease as well as increase. Past performance is not a guarantee or a reliable indicator for current or future performance and returns. The performance data do not take account of the commissions and costs incurred on the issue and redemption of units.
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Amundi Asset Management SA, “société anonyme” with a share capital of 746 262 615 € - Portfolio manager regulated by the Autorité des Marchés Financiers (AMF or French Financial Markets Authority) under number GP04000036 – Registered office: 90 boulevard Pasteur – 75015 Paris – France – 437 574 452 RCS Paris - www.amundi.com.