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Amundi brings investors a focus on US mid cap equities with Amundi Funds Wells Fargo US Mid Cap

Amundi offers investors exposure to US domestic growth potential with Amundi Funds Wells Fargo US Mid Cap, a sub-fund of its Luxembourg flagship SICAV. This sub-fund, formerly Amundi Funds Equity US Concentrated Core, aims to achieve long-term capital growth, and specifically to outperform (after applicable fees) the MSCI USA Mid Cap index over any given 5-year period.

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Amundi, the leading European asset manager with EUR 1.1 trillion in assets [1], offers investors exposure to US domestic growth potential with Amundi Funds Wells Fargo US Mid Cap, a sub-fund of its Luxembourg flagship SICAV. This sub-fund, formerly Amundi Funds Equity US Concentrated Core [2], aims to achieve long-term capital growth, and specifically to outperform (after applicable fees) the MSCI USA Mid Cap index over any given 5-year period [3].

Mid Cap stocks – an interesting asset class with long term structural benefits

When investing in equities, investors typically think of large cap securities. These securities offer a highly diversified investment universe covering a wide variety of sectors and industries comprising companies that are household names, the stocks of which are liquid and familiar to investors. Mid cap stocks, are by contrast, often overlooked by investors. The company names may be less familiar but they are no less a source of opportunity for performance [4].

Factors inherent to mid-cap value stocks, such as their cap size, involvement in M&A activity, and value characteristics, contribute to the consistent outperformance enjoyed by mid-cap value stocks over the long term. Midcaps are in the ―sweet spot‖ of the company life cycle. Compared with small-cap companies, midcaps may have the critical size required to endure poor economic or business developments and have survived the high-risk proof-of-concept phase. Yet, compared with large caps, they have the potential to grow shareholder value at a relatively higher rate. Midcaps are often prime acquisition targets for other companies seeking growth, which can also be a source of value creation and performance.

An experienced investment team with a strong track record

Amundi Funds Wells Fargo US Mid Cap is managed by Wells Fargo Asset Management‘s Special Equity team, with a collective experience of over 35 years, supported by 11 research dedicated analysts [5]. The investment strategy benefits from a strong track record, and the team manages more than USD 10bn today [6].

The sub-fund is managed in line with the Wells Fargo US mid cap value strategy, which has an wellestablished 15-year track record. Its gross annualized performance for 1-, 3- and 5-year returns is 21.1%, 10.3%, 16.2% respectively [7].

The investment team actively manages the sub-fund‘s portfolio [8] by using a fundamental analysis (bottomup) that aims to select the most attractive equities of cash rich companies having undervalued assets or growth potential and limited downside risk. The resulting portfolio is comprised of 50 to 70 equities. As the fund is invested in mid cap companies, which derive 85% of income from the US domestic market [9].

Amundi-Wells Fargo partnership

Following a strict selection process, Amundi has chosen Wells Fargo Asset Management in a unique cobranding initiative between the two fund houses. Wells Fargo Asset Management brings its expertise in US mid cap investment with a long track record and consistent performance which is highly complementary to Amundi’s fund offering and global distribution with local reach across Europe and Asia.

Christian Pellis, Global Head of Distribution, comments "Amundi Funds Wells Fargo US Mid Cap responds demand among our investors for opportunities to capture performance in the US domestic market. For many investors, US mid-caps can complement large cap investment as part of their asset allocation."

Bryant VanCronkhite, Co-Team Leader of the fund at Wells Fargo Asset Management, adds "We are excited to be partnering with Amundi to offer our unique accounting-based investment philosophy and process for investing in US Mid Cap stocks. We’ve found this niche to provide exceptional risk-adjusted returns in the past and believe we have more of the same ahead of us."

Next Finance , June 12

Article also available in : English EN | français FR

Footnotes

[1] Source: Amundi as at 31/03/2017. No.1 European asset manager based on global assets under management (AUM) and the main headquarters being based in Continental Europe - Source IPE ―Top 400 asset managers‖ published in June 2016 and based on AUM as at December 2015.

[2] Amundi Funds Equity US Concentrated Core, managed by TCW Investment Management Company, benchmark Russell 1000 Growth (Total Return) until May 3, 2017

[3] 3 The Sub-Fund does not offer a performance or capital guarantee. For further details on the risks linked to this sub-fund, please refer to the Key Investor Information Document (KIID) and the Prospectus of Amundi Funds.

[4] The Sub-Fund does not offer a performance or capital guarantee. For further details on the risks linked to this sub-fund, please refer to the Key Investor Information Document (KIID) and the Prospectus of Amundi Funds.

[5] Source: Wells Fargo Asset Management as at 31/03/2017

[6] Amundi Funds Equity US Concentrated Core, managed by TCW Investment Management Company, benchmark Russell 1000 Growth (Total Return) until May 3, 2017

[7] Source: Wells Fargo Asset Management as at 30 April 2017. Performance figure provided for indicative purposes only. Past performance is not indicative of future returns. Note: Figures GIPS® compliant.

[8] The Sub-Fund does not offer a performance or capital guarantee. For further details on the risks linked to this sub-fund, please refer to the Key Investor Information Document (KIID) and the Prospectus of Amundi Funds.

[9] Past market trends are not indicative of future market behaviour

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