Amundi has rebranded a US equity fund and appointed US-based Wells Fargo to manage it.
The Amundi Funds Wells Fargo US Mid Cap fund, a sub-fund of Amundi’s Luxembourg product range, was formerly Amundi Funds Equity US Concentrated Core.
Wells Fargo Asset Management‘s special equity team will manage the fund after winning a competitive tender.
The fund aims to outperform the MSCI USA Mid Cap index over any given five-year period.
Amundi claimed investors often overlooked the return opportunity from mid-cap stocks. Factors such as size, M&A activity and value characteristics contribute to the “consistent outperformance enjoyed by mid-cap value stocks over the long term”.
Mid-cap US stocks gain about 85% of revenues from the US domestic market, said Amundi.
The fund is managed in line with Wells Fargo’s US mid-cap value strategy using a fundamental analysis that aims to select the most attractive equities of cash rich companies.
The portfolio will invest in 50 to 70 stocks.
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