AMUNDI, Europe’s largest asset manager with 1.48 trillion euros in AUM, including 297 billion euros in responsible investing, announces the launch of Amundi Funds Multi-Asset Sustainable Future, which combines diversified investment management with an ESG approach.

Amundi has designed this sub-fund in response to two current issues for investors: the increasing value attributed to ESG considerations in investments and the need for conservative portfolios amidst rising market uncertainty.

The fund aims to provide sustainable returns with a conservative risk profile achieved through a multi-asset investment approach. The investment universe allows for diversified investing across a broad range of fixed income assets mainly in euro denominated investment grade corporate and government bonds and global equities (up to 40% of portfolio allocation).

Amundi’s holistic, responsible investing approach combines ESG factors with fundamental analysis to select only those companies and issuers it believes can generate returns in the long run.

Drawing on the combined expertise of portfolio managers, macro economists, strategists and portfolio construction analysts, a fundamental macro-driven approach is devised to determine the asset allocation across regions and asset classes.

The investment universe is then refined to exclude controversial issuers according to certain predefined criteria. Only companies with the best ratings according to Amundi’s proprietary ESG rating policy are selected.

Finally, the fund managers’ strong convictions form the basis for the final selection of fundamentally sound companies with a positive impact in line with Amundi’s ESG criteria.

The aim is to provide capital appreciation over a recommended investment period of 4 years.

The fund will be managed by experienced portfolio managers from the balanced strategies team led by Joerg Moshuber, lead portfolio manager and Enrico Bovalini, head of balanced strategies. Research provided by Amundi’s ESG analysis team, who provide ratings for over 5500+ issuers, is instrumental in the selection process.

The portfolio management process of the fund, combining traditional investment with ESG, is based on the long track record managing an Austrian domiciled UCITS3 ethical balanced fund. The Austrian domiciled UCITS was launched in November 1986 and has been managed by the current management team for the past 7 years.

Joerg Moshuber, lead portfolio manager of the fund comments “Our investment philosophy continues to evolve and this is driven largely by our investors. We truly believe in the companies and issuers selected for the portfolio from a fundamental investment perspective and an ESG standpoint. We strive to ensure our investments are able to achieve sustainable returns while having a positive impact on the environment and society. The way we do this is by investing only in issuers that are truly committed to building a better future.”