AMUNDI FUNDS
Seeking Income Through Subordination
GLOBAL SUBORDINATED BOND
Additional (undiscovered) Alpha sought through being positioned at the early stage of ESG rating migration of a company in order to capture any potential ESG premium not yet detected by the market
We expect ESG themes will be shifting their focus to Developing Markets and Emerging Markets can offer more opportunities for ESG rating upgrades
Possible Risks:
Investors should be aware that all investments involve risks. The main risks associated with this fund include: Concentration, Contingentconvertible bonds, Counterparty, Credit, Currency, Default, Derivatives, Emerging markets, Equity, Hedging, Interest rate, Investment Fund,Leverage, Liquidity, Management, Market, Operational, Prepayment and extension, Sustainable Investment, Use of techniques and instruments.These and other risks could cause the fund to lose money, to perform less well than similar investments, to experience fluctuation in NAV, or tofail to meet its objective over any period of time. Please refer to the Fund Prospectus and KIID before making any final investment decision.
• The fund seeks to achieve a meaningful spread pick-up over
• Senior Securities 2x-3x yield compared to Investment-Grade Credit
IMPORTANT INFORMATION
For Professional Clients Only
This material is provided to Professional Clients, including financial intermediaries, and is not intended for and should not be provided to the public.
This is a marketing communication. Please refer to the prospectus / information document and to the KID/KIID before making any final investment decisions
This document contains information about investment services provided by Amundi group companies or undertakings for collective investment in transferable securities or open-ended umbrella Irish collective asset- management vehicles (the “Funds”) established under the laws of Luxembourg and authorised for public distribution by the Commission de Surveillance du Secteur Financier or the laws of Ireland and authorized for public distribution by the Central Bank of Ireland. The management company of:
• Amundi Funds, Amundi Fund Solutions, First Eagle Amundi and Amundi Index Solutions is Amundi Luxembourg S.A., 5, allée Scheffer, L-2520 Luxembourg;
• CPR Invest is CPR Asset Management, 91-93 Boulevard Pasteur, 75015 Paris, France;
• KBI Funds ICAV and Amundi Fund Solutions ICAV is Amundi Ireland Limited, 1 George’s Quay Plaza, George’s Quay, Dublin 2, Ireland.
This material is for information purposes only, is not a recommendation, financial analysis or advice, and does not constitute a solicitation, invitation or offer to purchase or sell any the Funds or services described herein in any jurisdiction where such offer, solicitation or invitation would be unlawful.
This material has not been submitted for regulatory approval and is solely for issue in permitted jurisdictions and to persons who may receive it without breaching applicable legal or regulatory requirements. The information contained in this document is confidential and shall not, without prior written approval of Amundi Ireland Limited (“Amundi”), be copied, reproduced, modified, or distributed, to any third person or entity in any country.
The Funds described in this document may not be available to all investors and may not be registered for public distribution with the relevant authorities in all countries.
Please note that the management company may de-notify arrangements made for marketing as regards units/shares of the Fund in a Member State of the EU in respect of which it has made a notification.
Investment involves risk. The decision of an investor to invest in the Funds should take into account all the characteristics or objectives of the Funds. Past performance does not predict future results. Investment return and the principal value of an investment in the Funds or other investment product may go up or down and may result in the loss of the amount originally invested. All investors should seek professional advice prior to any investment decision, in order to determine the risks associated with the investment and its suitability. It is the responsibility of investors to read the legal documents in force in particular the current prospectus for each Fund. Subscriptions in the Funds will only be accepted on the basis of their latest prospectus in English or in local language in EU countries of registration, and/or the Key Investor Information Document / Key Information Document (“KIID”/ “KID” available in local language in EU countries of registration) which, together with the latest annual and semi-annual reports may be obtained, free of charge, at the registered office of Amundi Luxembourg S.A. or at www.amundi.lu. In Italy, this documentation is available at www.amundi.it. In Ireland, this documentation is available at www.amundi.ie or, for KBI Funds ICAV, at www.kbiglobalinvestors.com. Information relating to costs and charges of the Funds may be obtained from the KIID/KID. A summary of information about investors’ rights and collective redress mechanisms can be found in English on the regulatory page at https://about.amundi.com/Metanav-Footer/Footer/Quick-Links/Legal-documentation.
The performance data do not take account of the commissions and costs incurred on the issue and redemption of units/shares of the Funds.
Information on sustainability-related aspects can be found at [https://about.amundi.com/Metanav-Footer/Footer/Quick-Links/Legal-documentation].
In EEA Member States, the content of this document is approved by Amundi for use with Professional Clients (as defined in EU Directive 2004/39/EC) only and shall not be distributed to the public. Amundi Ireland Limited is authorised and regulated by the Central Bank of Ireland. KBI Global Investors Ltd is regulated by the Central Bank of Ireland and deemed authorised and regulated by the Financial Conduct Authority. The nature and extent of consumer protections may differ from those for firms based in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website. Société Générale, Dublin Branch 3rd Floor, IFSC House, IFS, Dublin 1 is the facilities agent for those sub-funds of Amundi Funds, First Eagle Amundi registered in Ireland.
In the UK, this document is issued by Amundi (UK) Limited, 77 Coleman Street, London, EC2R 5BJ, United Kingdom. Amundi (UK) Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) and entered on the FCA’s Financial Services Register under number 114503. This may be checked at https://register.fca.org.uk/ and further information of its authorisation is available on request. Amundi Funds SICAV, First Eagle Amundi SICAV, Amundi Index Solutions, CPR Invest SICAV, KBI Funds ICAV and Amundi Fund Solutions ICAV are recognised schemes for the purposes of Section 264 of the Financial Services and Markets Act 2000 (the “FSMA”) of the UK and can be promoted and sold direct to the public in the United Kingdom subject to compliance with the FSMA and applicable regulations made thereunder. Where a fund is an unregulated collective investment scheme under the FSMA it will not carry the protection provided by the UK regulatory system. This document is addressed only to those persons in the UK falling within one or more of the following exemptions from the restrictions in s 238 FSMA:
• authorised firms under FSMA and certain other investment professionals falling within article 14 of the FSMA (Promotion of Collective Investment Schemes) (Exemptions) Order 2001, as amended (the “CIS Order”) and their directors, officers and employees acting for such entities in relation to investment;
• high value entities falling within article 22 CIS Order and their directors, officers and employees acting for such entities in relation to investment;
• other persons who are in accordance with the Rules of the FCA prior to 1 November 2007 classified as Intermediate Customers or Market Counterparties or on or thereafter classified as Professional Clients or Eligible Counterparties.
The distribution of this document to any person in the UK not falling within one of the above categories is not permitted by Amundi (UK) Limited and may contravene FSMA. No person in the UK falling outside those categories should rely or act on it for any purposes whatsoever. Where a fund is an unregulated collective investment scheme under the UK Financial Services and Markets Act 2000 (“FSMA”) it will not carry the protection provided by the UK regulatory system.
In Switzerland, this document is for Qualified Investors (as defined in Swiss Collective Investment Schemes Act of 23 June 2006 as amended or supplemented) use only and shall not be offered to the public. The Representative and Paying Agent for Funds registered for public offering in Switzerland are, in respect of Amundi Funds, First Eagle Amundi and Amundi Index Solutions: Representative - CACEIS (Switzerland) SA and Paying Agent - CACEIS Bank, Nyon Branch both at 35 Route de Signy, Case postale 2259, CH-1260 Nyon; KBI Funds ICAV: Representative – ACOLIN Fund Services AG, Affolternstrasse 56, CH-8050 Zurich and Paying Agent – NPB Neue Privat Bank AG, Limmatquai 1, CH-8001 Zurich. Free copies of the prospectus, key investor information documents, annual and semi-annual reports, management regulations and other information are available at the representative’s address shown above.
In France, a free prospectus is available from Amundi Asset Management, 91-93 boulevard Pasteur -75015 Paris - France - 437 574 452 RCS Paris France or from the centralisateur of the Funds which in the case of Amundi Funds, Amundi Index Solutions and CPR Invest SICAV is CACEIS Bank SA, 1-3 place Valhubert, 75013 Paris and in the case of First Eagle Amundi SICAV is Société Générale, 29 Boulevard Haussmann, 75008 Paris.
In Germany, for additional information on the Fund, a free prospectus may be requested from Amundi Deutschland GmbH, Arnulfstr. 124-126 80636 Munich, Germany (Tel. +49.89.99.226.0). The information and paying agent for Amundi Fund Solutions ICAV is Marcard Stein & CO AG, Ballindamm 36, 20095 Hambourg, Germany.
In Austria the paying agents for Funds registered for public distribution are, in respect of Amundi Fund Solutions: UniCredit Bank Austria AG, Rothschildplatz 1, A-1020 Vienna; Amundi Funds, Amundi Index Solutions and First Eagle Amundi: Société Générale, Vienna Branch, Prinz Eugen Strasse 8 - 10/5/Top 11, A-1040 Vienna; CPR Invest: Raiffeisen Bank International AG, Am Stadtpark 9, A-1030 Wien; and KBI Funds ICAV: Erste Bank der oesterreichischen Sparkassen AG, Am Belvedere 1, A-1100 Vienna.
In Spain, the Funds are foreign undertakings for collective investment registered with the CNMV and numbered Amundi S.F. (493); Amundi Fund Solutions (1333); Amundi Fund Solutions ICAV (1969); Amundi Funds (61) First Eagle Amundi (111); Amundi Index Solutions (1495); CPR Invest (1564) and KBI Funds ICAV (1248). Any investment in the Funds or their respective sub-funds must be made through a registered Spanish distributor. Amundi Iberia SGIIC, SAU, is the main distributor of the Funds in Spain, registered with number 31 in the CNMV's SGIIC registry, with address at Pº de la Castellana 1, Madrid 28046. A list of all Spanish distributors may be obtained from the CNMV at www.cnmv.es. Units/shares may only be acquired on the basis of the most recent prospectus, key investor information document and further current documentation, which may be obtained from the CNMV.
In Chile and Peru, this document is approved for use by Administradora de Fondos de Pensiones/Pension Fund Administrators and other institutional investors.
In Mexico, this document is approved for use with institutional investors. It may not be distributed to third parties or to the public.
In Singapore, this document is provided solely for the use of distributors and financial advisors only and is not to be distributed to the retail public. Distribution occurs through Amundi Singapore Ltd, 80 Raffles Place, UOB Plaza 1, #23-01, Singapore 048624. This document contains information about certain sub-funds of Amundi Funds, First Eagle Amundi SICAV and Amundi Index Solutions which may be registered as recognised schemes in Singapore under the Securities and Futures Act (Cap. 289) of Singapore (“SFA”), or notified as restricted schemes under the Sixth Schedule to the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005. For the sub-funds or relevant unit/share classes notified as restricted schemes in Singapore, such sub-funds or relevant unit/share classes are not authorised or recognised by the Monetary Authority of Singapore ("MAS") and are not allowed to be offered to the Singapore retail public. Accordingly, this document and the material contained within, may not be circulated or distributed, nor may the relevant units/shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 304 of the SFA, (ii) to a relevant person pursuant to Section 305(1), or any person pursuant to Section 305(2), and in accordance with the conditions specified in Section 305 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. In other Asian jurisdictions, for use by licensed intermediaries only and not to be distributed to the public.
This information is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities or services in the United States or in any of its territories or possessions subject to its jurisdiction to or for the benefit of any U.S. Person (as defined in the prospectus of the Funds). The Funds have not been registered in the United States under the Investment Company Act of 1940 and units/shares of the Funds are not registered in the United States under the Securities Act of 1933.
This document is not intended for and no reliance can be placed on this document by persons falling outside of these categories in the above-mentioned jurisdictions. In jurisdictions other than those specified above, this document is for the sole use of the professional clients and intermediaries to whom it is addressed. It is not to be distributed to the public or to other third parties and the use of the information provided by anyone other than the addressee is not authorised.
This material is based on sources that Amundi considers to be reliable at the time of publication. Data, opinions and analysis may be changed without notice. Amundi accepts no liability whatsoever, whether direct or indirect, that may arise from the use of information contained in this material. Amundi can in no way be held responsible for any decision or investment made on the basis of information contained in this material
Date of publication: January 2023
Document ID: 2606905
© 2023 Morningstar. All Rights Reserved. The information, data, analyses and opinions (“Information”) contained herein: (1) include the proprietary information of Morningstar; (2) may not be copied or redistributed; (3) do not constitute investment advice; (4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and (6) may be drawn from fund data published on various dates. Morningstar is not responsible for any trading decisions, damages or other losses related to the Information or its use. Please verify all of the Information before using it and do not make any investment decision except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up.
Lipper is not responsible for the accuracy, reliability or completeness of the information that you obtain. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates. © Thomson Reuters 2023. All rights reserved.
The Funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such Funds or securities or any index on which such Funds or securities are based. The offering documents of the Funds contain a more detailed description of the limited relationship MSCI has with Amundi and any relevant Funds.
Relies on a dynamic forward-looking ESG investment approach. We identify and understand the necessary ESG drivers for a business and how the business and their drivers are set to evolve for the future*
Assets Class Breakdown
* Source: Amundi, as of November 2022
Source: Amundi, Bloomberg, as of October 2021
Four reasons to consider a subordinated fund
1
**Diversification does not guarantee profit or protect against loss
Source: ICE BofAML Indices, Amundi computations as of 30 September 2022
A standardised and fully integrated ESG framework across our strategies: ESG is about assessing what is material for the fundamental investment case, ESG integration is our responsibility.
HIGHER YIELD
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Marketing Communication
Leveraging on strong investment and research capabilities
Investing with a global & flexible approach, with anemphasis on developed markets and selectively on emerging markets
Targets high yield returns,
investing in investment
grade-rated issuers
An increasing number of subordinated issuers and a growing market cap
• Generally issued by what we believe are high quality companies (Investment-Grade rated)
• Issuer’s default risk is likely to be lower, additional spread is due to the subordination
LOWER DEFAULT RISK THAN HIGH YIELD
2
• Generally perpetual (but callable by the issuer after a number of years)
• Stock picking, structure analysis and strategic assessments can mitigate extension risk
3
MANAGEABLE DURATION RISK
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DO YOU WANt to KNOW MORE ABOUT
AMUNDI FUNDS GLOBAL SUBORDINATED BOND
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AMUNDI FUNDS
GLOBAL SUBORDINATED BOND
Seeking Income Through Subordination
* Source: Amundi, as of November 2022
Leveraging on strong investment and research capabilities
Investing with a global & flexible approach, with anemphasis on developed markets and selectively on emerging markets
Targets high yield returns, investing in investment grade-rated issuers
INVEST in the future,
LET'S START NOW
2°C*
<
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Marketing Communication
Possible Risks:
Investors should be aware that all investments involve risks. The main risks associated with this fund include: Concentration, Contingentconvertible bonds, Counterparty, Credit, Currency, Default, Derivatives, Emerging markets, Equity, Hedging, Interest rate, Investment Fund,Leverage, Liquidity, Management, Market, Operational, Prepayment and extension, Sustainable Investment, Use of techniques and instruments.These and other risks could cause the fund to lose money, to perform less well than similar investments, to experience fluctuation in NAV, or tofail to meet its objective over any period of time. Please refer to the Fund Prospectus and KIID before making any final investment decision.
DO YOU WANT TO KNOW MORE
Amundi FUNDS GLOBAL SUBORDINATED BOND
Go to the fund page
Download the infographic
IMPORTANT INFORMATION
For Professional Clients Only
This material is provided to Professional Clients, including financial intermediaries, and is not intended for and should not be provided to the public.
This is a marketing communication. Please refer to the prospectus / information document and to the KIID before making any final investment decisions
This document contains information about investment services provided by Amundi group companies or undertakings for collective investment in transferable securities or open-ended umbrella Irish collective asset- management vehicles (the “Funds”) established under the laws of Luxembourg and authorised for public distribution by the Commission de Surveillance du Secteur Financier or the laws of Ireland and authorized for public distribution by the Central Bank of Ireland. The management company of:
• Amundi Funds, Amundi Fund Solutions, First Eagle Amundi and Amundi Index Solutions is Amundi Luxembourg S.A., 5, allée Scheffer, L-2520 Luxembourg;
• CPR Invest is CPR Asset Management, 90 Boulevard Pasteur, 75015 Paris, France;
• KBI Funds ICAV and Amundi Fund Solutions ICAV is Amundi Ireland Limited, 1 George’s Quay Plaza, George’s Quay, Dublin 2, Ireland.
This material is for information purposes only, is not a recommendation, financial analysis or advice, and does not constitute a solicitation, invitation or offer to purchase or sell any the Funds or services described herein in any jurisdiction where such offer, solicitation or invitation would be unlawful.
This material has not been submitted for regulatory approval and is solely for issue in permitted jurisdictions and to persons who may receive it without breaching applicable legal or regulatory requirements. The information contained in this document is confidential and shall not, without prior written approval of Amundi Ireland Limited (“Amundi”), be copied, reproduced, modified, or distributed, to any third person or entity in any country.
The Funds described in this document may not be available to all investors and may not be registered for public distribution with the relevant authorities in all countries.
Please note that the management company may de-notify arrangements made for marketing as regards units/shares of the Fund in a Member State of the EU in respect of which it has made a notification.
Investment involves risk. The decision of an investor to invest in the Funds should take into account all the characteristics or objectives of the Funds. Past performance does not predict future results. Investment return and the principal value of an investment in the Funds or other investment product may go up or down and may result in the loss of the amount originally invested. All investors should seek professional advice prior to any investment decision, in order to determine the risks associated with the investment and its suitability. It is the responsibility of investors to read the legal documents in force in particular the current prospectus for each Fund. Subscriptions in the Funds will only be accepted on the basis of their latest prospectus in English or in local language in EU countries of registration, and/or the Key Investor Information Document (“KIID” available in local language in EU countries of registration) which, together with the latest annual and semi-annual reports may be obtained, free of charge, at the registered office of Amundi Luxembourg S.A. or at www.amundi.lu. In Italy, this documentation is available at www.amundi.it. In Ireland, this documentation is available at www.amundi.ie or, for KBI Funds ICAV, at www.kbiglobalinvestors.com. Information relating to costs and charges of the Funds may be obtained from the KIID. A summary of information about investors’ rights and collective redress mechanisms can be found in English on the regulatory page at https://about.amundi.com/Metanav-Footer/Footer/Quick-Links/Legal-documentation.
The performance data do not take account of the commissions and costs incurred on the issue and redemption of units/shares of the Funds.
Information on sustainability-related aspects can be found at https://about.amundi.com/Metanav-Footer/Footer/Quick-Links/Legal-documentation.
In EEA Member States, the content of this document is approved by Amundi for use with Professional Clients (as defined in EU Directive 2004/39/EC) only and shall not be distributed to the public. Amundi Ireland Limited is authorised and regulated by the Central Bank of Ireland. KBI Global Investors Ltd is regulated by the Central Bank of Ireland and deemed authorised and regulated by the Financial Conduct Authority. The nature and extent of consumer protections may differ from those for firms based in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website. Société Générale, Dublin Branch 3rd Floor, IFSC House, IFS, Dublin 1 is the facilities agent for those sub-funds of Amundi Funds, First Eagle Amundi registered in Ireland.
In the UK, this document is issued by Amundi (UK) Limited, 77 Coleman Street, London, EC2R 5BJ, United Kingdom. Amundi (UK) Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) and entered on the FCA’s Financial Services Register under number 114503. This may be checked at https://register.fca.org.uk/ and further information of its authorisation is available on request. Amundi Funds SICAV, First Eagle Amundi SICAV, Amundi Index Solutions, CPR Invest SICAV, KBI Funds ICAV and Amundi Fund Solutions ICAV are recognised schemes for the purposes of Section 264 of the Financial Services and Markets Act 2000 (the “FSMA”) of the UK and can be promoted and sold direct to the public in the United Kingdom subject to compliance with the FSMA and applicable regulations made thereunder. Where a fund is an unregulated collective investment scheme under the FSMA it will not carry the protection provided by the UK regulatory system. This document is addressed only to those persons in the UK falling within one or more of the following exemptions from the restrictions in s 238 FSMA:
• authorised firms under FSMA and certain other investment professionals falling within article 14 of the FSMA (Promotion of Collective Investment Schemes) (Exemptions) Order 2001, as amended (the “CIS Order”) and their directors, officers and employees acting for such entities in relation to investment;
• high value entities falling within article 22 CIS Order and their directors, officers and employees acting for such entities in relation to investment;
• other persons who are in accordance with the Rules of the FCA prior to 1 November 2007 classified as Intermediate Customers or Market Counterparties or on or thereafter classified as Professional Clients or Eligible Counterparties.
The distribution of this document to any person in the UK not falling within one of the above categories is not permitted by Amundi (UK) Limited and may contravene FSMA. No person in the UK falling outside those categories should rely or act on it for any purposes whatsoever. Where a fund is an unregulated collective investment scheme under the UK Financial Services and Markets Act 2000 (“FSMA”) it will not carry the protection provided by the UK regulatory system.
In Switzerland, this document is for Qualified Investors (as defined in Swiss Collective Investment Schemes Act of 23 June 2006 as amended or supplemented) use only and shall not be offered to the public. The Representative and Paying Agent for Funds registered for public offering in Switzerland are, in respect of Amundi Funds, First Eagle Amundi and Amundi Index Solutions: Representative - CACEIS (Switzerland) SA and Paying Agent - CACEIS Bank, Nyon Branch both at 35 Route de Signy, Case postale 2259, CH-1260 Nyon; KBI Funds ICAV: Representative – ACOLIN Fund Services AG, Affolternstrasse 56, CH-8050 Zurich and Paying Agent – NPB Neue Privat Bank AG, Limmatquai 1, CH-8001 Zurich. Free copies of the prospectus, key investor information documents, annual and semi-annual reports, management regulations and other information are available at the representative’s address shown above.
In France, a free prospectus is available from Amundi Asset Management, 90 boulevard Pasteur -75015 Paris - France - 437 574 452 RCS Paris France or from the centralisateur of the Funds which in the case of Amundi Funds, Amundi Index Solutions and CPR Invest SICAV is CACEIS Bank SA, 1-3 place Valhubert, 75013 Paris and in the case of First Eagle Amundi SICAV is Société Générale, 29 Boulevard Haussmann, 75008 Paris.
In Germany, for additional information on the Fund, a free prospectus may be requested from Amundi Deutschland GmbH, Arnulfstr. 124-126 80636 Munich, Germany (Tel. +49.89.99.226.0). The information and paying agent for Amundi Fund Solutions ICAV is Marcard Stein & CO AG, Ballindamm 36, 20095 Hambourg, Germany.
In Austria the paying agents for Funds registered for public distribution are, in respect of Amundi Fund Solutions: UniCredit Bank Austria AG, Rothschildplatz 1, A-1020 Vienna; Amundi Funds, Amundi Index Solutions and First Eagle Amundi: Société Générale, Vienna Branch, Prinz Eugen Strasse 8 - 10/5/Top 11, A-1040 Vienna; CPR Invest: Raiffeisen Bank International AG, Am Stadtpark 9, A-1030 Wien; and KBI Funds ICAV: Erste Bank der oesterreichischen Sparkassen AG, Am Belvedere 1, A-1100 Vienna.
In Spain, the Funds are foreign undertakings for collective investment registered with the CNMV and numbered Amundi S.F. (493); Amundi Fund Solutions (1333); Amundi Fund Solutions ICAV (1969); Amundi Funds (61) First Eagle Amundi (111); Amundi Index Solutions (1495); CPR Invest (1564) and KBI Funds ICAV (1248). Any investment in the Funds or their respective sub-funds must be made through a registered Spanish distributor. Amundi Iberia SGIIC, SAU, is the main distributor of the Funds in Spain, registered with number 31 in the CNMV's SGIIC registry, with address at Pº de la Castellana 1, Madrid 28046. A list of all Spanish distributors may be obtained from the CNMV at www.cnmv.es. Units/shares may only be acquired on the basis of the most recent prospectus, key investor information document and further current documentation, which may be obtained from the CNMV.
In Chile and Peru, this document is approved for use by Administradora de Fondos de Pensiones/Pension Fund Administrators and other institutional investors.
In Mexico, this document is approved for use with institutional investors. It may not be distributed to third parties or to the public.
In Singapore, this document is provided solely for the use of distributors and financial advisors only and is not to be distributed to the retail public. Distribution occurs through Amundi Singapore Ltd, 80 Raffles Place, UOB Plaza 1, #23-01, Singapore 048624. This document contains information about certain sub-funds of Amundi Funds, First Eagle Amundi SICAV and Amundi Index Solutions which may be registered as recognised schemes in Singapore under the Securities and Futures Act (Cap. 289) of Singapore (“SFA”), or notified as restricted schemes under the Sixth Schedule to the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005. For the sub-funds or relevant unit/share classes notified as restricted schemes in Singapore, such sub-funds or relevant unit/share classes are not authorised or recognised by the Monetary Authority of Singapore ("MAS") and are not allowed to be offered to the Singapore retail public. Accordingly, this document and the material contained within, may not be circulated or distributed, nor may the relevant units/shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 304 of the SFA, (ii) to a relevant person pursuant to Section 305(1), or any person pursuant to Section 305(2), and in accordance with the conditions specified in Section 305 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. In other Asian jurisdictions, for use by licensed intermediaries only and not to be distributed to the public.
This information is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities or services in the United States or in any of its territories or possessions subject to its jurisdiction to or for the benefit of any U.S. Person (as defined in the prospectus of the Funds). The Funds have not been registered in the United States under the Investment Company Act of 1940 and units/shares of the Funds are not registered in the United States under the Securities Act of 1933.
This document is not intended for and no reliance can be placed on this document by persons falling outside of these categories in the above-mentioned jurisdictions. In jurisdictions other than those specified above, this document is for the sole use of the professional clients and intermediaries to whom it is addressed. It is not to be distributed to the public or to other third parties and the use of the information provided by anyone other than the addressee is not authorised.
This material is based on sources that Amundi considers to be reliable at the time of publication. Data, opinions and analysis may be changed without notice. Amundi accepts no liability whatsoever, whether direct or indirect, that may arise from the use of information contained in this material. Amundi can in no way be held responsible for any decision or investment made on the basis of information contained in this material.
Date of publication: December 2022
Document ID: 2603940
© 2022 Morningstar. All Rights Reserved. The information, data, analyses and opinions (“Information”) contained herein: (1) include the proprietary information of Morningstar; (2) may not be copied or redistributed; (3) do not constitute investment advice; (4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and (6) may be drawn from fund data published on various dates. Morningstar is not responsible for any trading decisions, damages or other losses related to the Information or its use. Please verify all of the Information before using it and do not make any investment decision except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up.
Lipper is not responsible for the accuracy, reliability or completeness of the information that you obtain. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates. ©Thomson Reuters 2022. All rights reserved.
The Funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such Funds or securities or any index on which such Funds or securities are based. The offering documents of the Funds contain a more detailed description of the limited relationship MSCI has with Amundi and any relevant Funds.
Lower risk, potentially lower return
Higher risk, potentially higher return
The SRRI represents the risk and return profile as presented in the Key Investor Information Document (KIID). The lowest category does not imply that there is no risk. The SRRI is not guaranteed and may change over time.
The risk level of this Sub-Fund mainly reflects the market risk arising from investments in international equities and debt securities, namely asset backed securities. Historical data may not be a reliable indication for the future. Risk category shown is not guaranteed and may shift over time. The lowest category does not mean ‘risk free’. Your initial investment does not benefit from any guarantee or protection.
Important risks materially relevant to the Sub-Fund which are not adequately captured by the indicator:
• Credit risk: represents the risks associated with an issuer’s sudden downgrading of its signature’s quality or its default.
• Liquidity risk: in case of low trading volume on financial markets, any buy or sell trade on these markets may lead to important market variations/fluctuations that may impact your portfolio valuation.
• Counterparty risk: represents the risk of default of a market participant to fulfil its contractual obligations vis-à-vis your portfolio.
• Operational risk: this is the risk of default or error within the different service providers involved in managing and valuing your portfolio.
• Emerging Markets risk : some of the countries invested in may carry higher political, legal, economic and liquidity risks than investments in more developed countries.
The use of complex products such as financial derivative instruments might increase market movements in your portfolio. The occurrence of any of these risks may have an impact on the net asset value of your portfolio.
This document provides you with key investor information about this Sub-Fund. It is not marketing material. The information is required by law to help you understand the nature and the risks of investing in this Sub-Fund. You are advised to read it so you can make an informed decision whether to invest.
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Art 8 - This Sub-Fund integrates ESG criteria into its investment process and, in addition, aims to achieve a portfolio ESG score above the ESG score of its benchmark, or investment universe (where there is no benchmark). For full details please refer to the fund prospectus. The decision of the investor to invest in the promoted fund should take into account all the characteristics or objectives of the fund.
Risk and reward profile
Assets Class Breakdown
An increasing number of subordinated issuers and a growing market capincluded in the portfolio
Source: Amundi, Bloomberg, as of October 2021
60%
50%
40%
30%
20%
10%
0%
Treasuries
Financials
Industrials
Govt. Related
Portfolio
Benchmark
Four reasons to consider a subordinated fund
A standardised and fully integrated ESG framework across our strategies: ESG is about assessing what is material for the fundamental investment case, ESG integration is our responsibility.
**Diversification does not guarantee profit or protect against loss
Source: ICE BofAML Indices, Amundi computations as of 30 September 2022
• Generally perpetual (but callable by the issuer after anumber of years)
• Stock picking, structure analysis and strategic assessments can mitigate extension risk
MANAGEABLE DURATION RISK
3
• Generally issued by what we believe are high quality companies (Investment-Grade rated)
• Issuer’s default risk is likely to be lower, additional spread is due to the subordination
LOWER DEFAULT RISK THAN HIGH YIELD
2
• The fund seeks to achieve ameaningful spread pick-up over
• Senior Securities 2x-3x yield compared to Investment-Grade Credit
HIGHER YIELD
1
3%
1%
1%
1%
1%
7%
2%
10%
60%
50%
40%
30%
20%
10%
0%
Emg
Sovereign Ext.
Emg Sovereign Loc.
Utilities
Securitized
Portfolio
Benchmark
* Diversification does not guarantee a profit or protect against a loss.
Source: Amundi, as of November 2022. Given for illustrative purposes only.
Credit Analysis
and Selection
2
FLEXIBLE Asset
Allocation
1
Building
the Portfolio
3
Risk Management
4
Through rigorous credit selection and analysis of the bond documentation, we seek to identify the best credits and subordination options at the most appropriate times
Allocating assets between different parts of the capital stack and without any static ratio between financials and non-financials allows us to be flexible. Such feature allows us to adapt to future regulatory developments and we seek to avoid overexposure to single sectors
Based on a combination of top-down and bottom-up approach. We believe that security selection will be driven by the strongest conviction of our Credit Analyst team, driven by the fundamentals of the issuer and the language of the bond documentation
Aiming to ensure we use each unit of risk efficiently, while optimising diversification* potential
A 4 pillar investment process built on Amundi’s expertise
* Diversification does not guarantee a profit or protect against a loss.
Source: Amundi, as of November 2022. Given for illustrative purposes only.
FLEXIBLE Asset
Allocation
1
Allocating assets between different parts of the capital stack and without any static ratio between financials and non-financials allows us to be flexible. Such feature allows us to adapt to future regulatory developments and we seek to avoid overexposure to single sectors
Credit Analysis
and SelectioN
2
Through rigorous credit selection and analysis of the bond documentation, we seek to identify the best credits and subordination options at the most appropriate times
Building
the Portfolio
3
Based on a combination of top-down and bottom-up approach. We believe that security selection will be driven by the strongest conviction of our Credit Analyst team, driven by the fundamentals of the issuer and the language of the bond documentation
Risk Management
4
Aiming to ensure we use each unit of risk efficiently, while optimising diversification* potential
A 4 pillar investment process built on Amundi’s expertise
50%
25%
9%
8%
46%
9%
10%
11%
• Dramatic growth in 2013, 2014 and 2015 driven by international regulatory requirements
• Increased issuance
• Increased diversification* bysector, country, issuer
GROWING GLOBAL ASSET CLASS
4
• Dramatic growth in 2013, 2014 and 2015 driven by international regulatory requirements
• Increased issuance
• Increased diversification* bysector, country, issuer
GROWING GLOBAL ASSET CLASS
4
Investment Manager
Management Company
Custodian Institution
ISIN Code
Base Currency
Amundi UK Limited
Amundi Luxembourg SA
CACEIS Bank, Luxembourg Branch
LU1883334275
EUR
Class A2 EUR
The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movement in the markets or because we are not able to pay you. We have classified this product as 3 out of 7, which is medium-low risk class. This rates the potential losses from future performance at a medium- low level, and poor market conditions are unlikely impact our capacity to pay you. Additional risks: Market liquidity risk could amplify the variation of product performances. This product does not include any protection from future market performance so you could lose some or all of your investment. Beside the risks included in the risk indicator, other risks may affect the Sub-Fund’s performance. Please refer to the Amundi Funds prospectus.
Key Characteristics
What are the risks and what could I get in return?
RISK INDICATOR
SFDR Classification
What are the costs?
The person advising on or selling you this product may charge you other costs. For more information of all associated costs of this sub-fund, please refer to the PRIIPs KID.
This Sub-Fund integrates ESG criteria into its investment process and, in addition, aims to achieve a portfolio ESG score above the ESG
score of its benchmark, or investment universe (where there is no benchmark). For full details please refer to the SFDR Pre-Contractual Annex, the Amundi Responsible Investment Policy and the Amundi ESG Regulatory Statement. The decision of the investor to invest in the promoted fund should take into account all the characteristics or objectives of the fund.
Please refer to the links below:
What are the performance scenarios?
For more information of the different performance scenarios
of the sub-fund in unfavourable, moderate, and favourable scenarios over the last 5 years, please refer to the PRIIPs KID.
Please see our Global Distributor website for more
SFDR Pre-Contractual Annex
Amundi Responsible Investment Policy
Amundi ESG Regulatory Statement
The risk indicator assumes you keep the product for 5 years