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These sub-funds aim to seek long-term capital growth
by applying a Dynamic Multi Factor Allocation
process on Eurozone, Europe and Global equity universe, respectively. It offers investors the
opportunity to capture factor risk premia and navigate through equity market cycles.
“Factor Investing is gaining strong traction amongst investors and we are pleased to extend our broad
Smart Beta and Factor Investing capabilities. We are convinced that this risk-focused investment
philosophy will meet investors’ structural need for robust risk-management through factors, as well as
helping them facing the very specific current environment” declares Fannie Wurtz, Managing Director
Amundi ETF, Indexing & Smart Beta.
Amundi’s Dynamic Factor Allocation process puts risk management at the core of the strategy: “We
believe that the best way to achieve long-term and robust performance is to manage all the different
risk dimensions” says Bruno Taillardat, Global Head of Smart Beta and Factor Investing at Amundi.
“Once we build consistent and robust factors, the challenge is to allocate among them all along the
cycle, as risks evolve over time.”
The investment process is based on 3 steps
Firstly, factor portfolios are built using Amundi
proprietary research capabilities. Factors are then combined using a strategic allocation methodology,
where each factor must contribute equally to the portfolio risk profile. The management team
implements long-term combination in line with market regime shift periods. In addition, to avoid bias
and to tackle valuation risks, the team readjusts tactically among factors. Finally, portfolio guidelines
are applied to avoid concentration and limit execution costs.
These Amundi Dynamic Multi Factor Allocation solutions are managed within the Smart Beta and
Factor Investing dedicated platform, supported by Thierry Roncalli, Head of Quantitative Research at
Amundi, and his teams. In addition to open-ended funds, Amundi teams are fully committed to adapt
the approach to specific investors’ constraints to build customized solutions; for instance with the
integration of SRI, ESG, and Low Carbon criteria, which can be considered as unrewarded risks.
Overall, the Amundi Smart Beta and Factor Investing Solutions platform represents more than €19bn
AUM*, with a wide range of risk-efficient and factor investing solutions available in active and passive
management.
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