Amundi's Fixed Income Strategies | Amundi Institutional (2024)

Amundi, the European leader in Fixed Income investing

Amundi's Fixed Income Strategies | Amundi Institutional (1)

Amundi's Fixed Income Strategies | Amundi Institutional (2)

Amundi's Fixed Income Strategies | Amundi Institutional (3)

Over the past 20 years Amundi has developed and redefined the investment process behind its Global Fixed Income strategies. Our teams have the insight required to seek out new opportunities and the expertise to develop innovative investment strategies.
Amaury d’Orsay
Head of Fixed Income

Amundi's Alpha Fixed Income offer

Amundi's broad expertise, which spans all fixed income markets, allows to continually seek out the best opportunities for our clients. The size and structure of these markets continue to evolve, offering new ways for investors to source potential returns.

4 reasons to partner with Amundi for Alpha Fixed Income strategies

1	Unique Market Coverage

More than 200 professionals, providing a broad coverage of the global bond markets. Through several investment centers around the world, our teams also benefit from a global and collegial investment culture.

2	Integrated Investment platform

A global platform integrating Risk Management, Trading, Research and Portfolio Management capabilities, offering a deep quality of service to our clients.

3	Robust and comprehensive risk management

Continuous monitoring from the front-office to operations: it includes liquidity simulations with regards to different market conditions and traded volumes for capacity estimated by the dealing desk for each kind of instrument.

4	Sound liquidity policy

The Alpha Fixed Income range in a glimpse

Bonds

Amundi’s wide and proven expertise in this field, especially in euro and global government bonds showing a 40-year track record, aims to serve the best dynamic allocation.Our investment teams combine long-term macro views with short-term tactical management to benefit from the main opportunities of the markets, in different economic cycles. This core expertise includes euro and global strategies drawing on the crucial skills of local investment teams.

The Investment Grade and High Yield markets developed significantly since the introduction of the single currency in 1999. Amundi's Corporate Bonds strategies are led by stable and experienced teams working closely with dedicated strategists and credit analysts. Since inception, the teams developed new solutions including,low duration strategies²,ABS³,subordinated debt⁴,unconstrained strategies⁵,rule-based strategies⁶andcredit continuum strategies⁷.

Amundi has developed strategic global, US and euro bond expertise which spans a broad universe: bonds, investment grade credit,high yield, ABS³,convertible and inflation-linked bonds, currencies and emerging bonds.

With the aim of seeking out value wherever it exists, our investment teams implement dynamic asset allocation built around our large investment toolbox and supported by our long-standing expertise in aggregate strategies, which are regularly recognized by rating agencies, such as Morningstar and Lipper for both their innovation and top-quality management.

Government Bonds Amundi’s wide and proven expertise in this field, especially in euro and global government bonds showing a 40-year track record, aims to serve the best dynamic allocation. Our investment teams combine long-term macro views with short-term tactical management to benefit from the main opportunities of the markets, in different economic cycles. This core expertise includes euro and global strategies drawing on the crucial skills of local investment teams.

Corporate Bonds The Investment Grade and High Yield markets developed significantly since the introduction of the single currency in 1999. Amundi's Corporate Bonds strategies are led by stable and experienced teams working closely with dedicated strategists and credit analysts. Since inception, the teams developed new solutions including, low duration strategies2, ABS3, subordinated debt4, unconstrained strategies5, rule-based strategies6 and credit continuum strategies7.

Aggregate Bonds Amundi has developed strategic global, US and euro bond expertise which spans a broad universe: bonds, investment grade credit, high yield, ABS3, convertible and inflation-linked bonds, currencies and emerging bonds.

Absolute Return

Amundi’s Absolute Return Fixed Income platform is designed to address the challenges facing investors in the fixed income markets today. An increasingly difficult environment, including heightened rates volatility, means investors must re-think their approach to fixed income investing, beyond the ‘traditional’ sense.

Our commitment to our clients is twofold: to provide an extensive range of global, and flexible, investmentsolutions that address these challenges by delivering strong risk-adjusted returns with an unwavering focus on capital preservation, and providing abest-in-class experience in the Absolute Return fixed income space.

Amundi’s Absolute Return Fixed Income methodology combines a disciplined and transparent investment process with a strict downside risk management framework. Access to a broad investable universe enables us to identify numerous uncorrelated alpha opportunities across a wide range of markets and horizons and allows us to build diverse portfolios that have low to negative correlation with traditional asset classes. We actively avoid biases and reliance on a single source of return in order to maximize investment opportunities. We harness the breadth of research and asset class expertise within Amundi to build our macro view of the world and use that framework to dynamically manage the beta risk in our portfolios based on our level of conviction and expectations for future volatility.

Amundi’s absolute return investment team is global, with members across multiple Amundi investment offices, and integrated within the wider fixed income platform. The team is made up of likeminded and collaborative individuals who share the same investment philosophy, principles, and commitment to our clients.

Our Absolute Return Expertise Amundi’s Absolute Return Fixed Income platform is designed to address the challenges facing investors in the fixed income markets today. An increasingly difficult environment, including heightened rates volatility, means investors must re-think their approach to fixed income investing, beyond the ‘traditional’ sense.

Our Approach Amundi’s Absolute Return Fixed Income methodology combines a disciplined and transparent investment process with a strict downside risk management framework. Access to a broad investable universe enables us to identify numerous uncorrelated alpha opportunities across a wide range of markets and horizons and allows us to build diverse portfolios that have low to negative correlation with traditional asset classes. We actively avoid biases and reliance on a single source of return in order to maximize investment opportunities. We harness the breadth of research and asset class expertise within Amundi to build our macro view of the world and use that framework to dynamically manage the beta risk in our portfolios based on our level of conviction and expectations for future volatility.

Our Team Amundi’s absolute return investment team is global, with members across multiple Amundi investment offices, and integrated within the wider fixed income platform. The team is made up of likeminded and collaborative individuals who share the same investment philosophy, principles, and commitment to our clients.

Credit Capabilities:Combine the best credit opportunities

Our capabilities allowsto re-allocateamong credit sectors and sub-segments providesincreased robustnessof portfolios in times of uncertainty.

Our strategies are backed by our stable and experienced Credit Analysis Team - one of the largest in Europe, covering US, Emerging and Developed markets. Their top quality research and analysis supports investment teams in designing the most optimal allocation according to the prevailing bond & credit market conditions.

US Fixed Income

Committed to offering the widest scale of opportunistic solutions, Amundi has refined investment process behind US Fixed Income. A dedicated investment team is implemented locally, including 8 Senior FI Portfolio managers with an average of 25 years of industry experience.

This team manages an extended spectrum of assets, backed by sector specialists: liquid markets, securitized credit and corporate credit professionals. It focuses on security selection and sector rotation and implements a consistent investment approach across multiple U.S. fixed income sectors, combining proprietary quantitative valuation tools with in-depth fundamental investment analysis and market experience to identify attractive sectors and securities.

Our established platform is renowned for its long-standing expertise in institutional Fixed Income strategies:

Multi-Sector Fixed Income: core fixed income strategies & US treasuries, including total return to boost return potential
Asset-Backed Strategies: from high credit quality to agency mortgage-backed securities and securitised credit to obtain a high level of current income and reduce interest rate risk
Credit Strategies: relative value, global or US high yield, corporate credit allowing to invest in Investment Grade and High Yield as well as mortgage-backed securities and emerging markets corporates.

EM Fixed Income

Amundi applies an integrated and research led approach to investing in emerging markets, looking across equity and fixed income. Understanding government bonds markets enables a better understanding of growth and inflation. Rates help us understand systemic risk. Credit and equity markets are symbiotic but not always efficient. Understanding the full cost of capital creates opportunity.

Our strategies:

Blend & Aggregate
Hard Currency Sovereign
Local currency
Credit
Short Term
Flexible Multi-Sector

_{Source: Amundi Asset Management, as of December 31, 2020}

Fixed Income Allocation

Amundi offers a comprehensive range of solutions addressing the recurring needs of our investors.

Amundi's teams offer structural and tactical strategies for all allocation purposes.

Fostering innovation in Fixed Income field

Willing to seek out value in the largest scale of fixed income instruments, Amundi has developed an in-depth expertise in innovative strategies such as Quantamental, Credit Continuum and Liability Driven Investment (LDI) strategies.

Green Fixed Income

«Greening» fixed income markets is critical if the financial sector wants to successfully embrace the Paris climate agreements goals.

Amundi partners with key players to foster innovative funds.

With the European Investment Bank, Amundi’s launching a green credit continuum program which aims to provide €1 bn for the development of green fixed income in Europe.

With the Asian Infrastructure Investment Bank, Amundi developed an emerging market corporate development strategy focusing on real economy issuers of labeled and unlabeled green bonds.

With the International Finance Corporation, Amundi launched the largest green bond fund of the market. This strategy received several awards in 2019.

Amundi crowned "Investor of the Year" at Environmental Finance's Bond Awards 2023.The Award is the recognition of Amundi’s thought-leadership, best practice and innovation in sustainable Fixed Income.

Amundi, a leading player in Responsible Investment Fixed Income

Amundi has developed an in-depth expertise in strategies such as ESG Fixed Income, willing to seek out value in the largest scale of fixed income instruments.

Amundi was one of the first Asset Managers to be involved in Responsible Investment. Our commitment to Responsible Investment dates back to 1989 with the launch of one of the first ethical investment funds. In 2004 Amundi was the first European Asset manager to launch an open-ended SRI Credit fund. Being a responsible financial actor is one of our teams’ daily stance. This commitment is translated into both our investment processes as well as our range of investment solutions.

Responsible investment offering

Amundi offers to all client segments a wide range of open-ended funds and tailor-made Responsible Investment solutions that incorporate ESG factors into investment decisions.

1 Source: Amundi, at 30/09/2023
2 Low duration strategies: short-term bonds maturing predominantly before five years. Our teams are managing a comprehensive range a low duration solutions ranging form directional IG & HY strategies, FRN-like strategies and Absolute Return stragegies.
3ABS : an asset-backed security (ABS) is a financial security collateralized by a pool of assets such as loans, leases, credit card debt, royalties or receivables. Amundi is a leading player in this field. In 2014, the European Central Bank (ECB) appointed our team to conduct its Asset-Backed Securities Purchase Programme (ABSPP).
4 Subordinated bond : a subordinated bond is a security that is senior to equity securities and junior to other securities in terms of debt servicing. Amundi has expertise in managing two strategies in this field – globally and in Europe.
5 Unconstrained strategies : unconstrained investing, or flexible investin, allows the fund managers to consider a broad range of investment opportunities without the constraints of following a benchmark (i.e. absolute return strategies). Amundi is a growing player in this field, with an extensive range of global and flexible, investment solutions in the absolute return fixed income space.
6 Rule-based strategies : a rule-based strategy based itself on data computing and analysis. Amundi Fixed Income teams leverages on its proprietary tools to develop and launch Risk Premia, Value Factor and multifactor strategies. These strategies show enhanced return/risk profiles as compared to traditional benchmarks.
7 Credit continuum : a Credit Continuum strategy aims to make the most of the whole Credit spectrum ranging from liquid Corporate Bonds (both Investment Grade & High Yield) to lesser liquid assets including Secured Assets, Private Debt, and growth assets such as Infrastructure or Shipping. Our teas have designed different credit continuum strategies including an open-ended solution and a Green Credit Continuum.