Amundi has launched an absolute return fund that invests in global dividends through swaps and futures. Amundi describes the fund as a first.
The dividend fund market has grown since 2008 and earlier this year, Melanion Capital, which like Amundi is a France-based asset manager, launched what it called the first dividend futures fund.
Amundi says that by analysing discrepancies between what the market is pricing in for future dividend payments and what companies actually pay, the Amundi Funds Absolute Global Dividend Fund can make returns where dividends are undervalued.
By way of example, Warin Buntrock, fund manager at BFT Gestion, a wholly-owned subsidiary of Amundi which manages the fund, says that since the fund’s inception, futures on Nikkei 2016 dividends have gained 15.5% while the Nikkei index has risen by only 0.85%.
The fund is part of Amundi’s Luxembourg Sicav Amundi Funds offering,
It aims to generate an annual gross yield of 7% over a minimum investment horizon of three years.
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