Amundi has launched a structured multi-asset fund that aims to deliver both guaranteed partial capital protection and moderate returns, with minimal risk.
The fund offers a partial permanent capital guarantee, with daily capital protection of 90% locked in at the highest net asset value (Nav) achieved since the fund inception date.
The level of protection increases each time the fund’s Nav reaches a new high. However, if markets trend downwards and the fund’s Nav declines, the protection facility guarantees investors’ capital will not fall below 90% of the highest Nav recorded. Investors can also choose to redeem their capital at any time, without penalty.
The fund can invest in all asset classes, sectors and industries, geographical areas and currencies, and will adapt its investment strategy according to different risk levels in the market cycle.
Christian Pellis, global head of distribution at Amundi, said savers were “caught between a rock and a hard place” due to low interest rates, and the fund offers a new approach to boosting returns without significant risk exposure.
He added that the strategy would appeal to investors looking to transition into lower risk strategies, such as those approaching retirement.
The fund is a Luxembourg-domiciled Sicav, and is currently registered for sale in Austria, France, Finland, Germany, Greece, Italy and Spain.
Amundi currently manages assets of €2.6 billion in protected flexible funds.
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