Vincent Mortier

Since the start of the year, some of the key convictions highlighted by Amundi, Europe’s largest asset manager, have been playing out and some trends have accelerated.

According to Vincent Mortier, Group CIO, Amundi,” We are witnessing a regime shift characterised by heightened policy uncertainty and a distinct break in the international order. These key themes were highlighted at the Davos World Economic Forum and confirmed at the Munich Security Conference.

“Tariffs remain a key tool for the redesign of the new order. The recent Supreme Court ruling against Trump’s emergency tariffs introduced an additional layer of uncertainty to the policy landscape.

“All these developments confirm that the overall geo economic environment is in transition. President Lagarde’s mention in her speech of the ECB’s new repo facility for central banks outside the euro area signifies how policymakers are thinking about the rising importance of geoeconomics.

“We are clearly entering a more complex market equilibrium, where policy, including trade policy, geopolitics, and capital allocation are as critical as the economic cycle itself. With growth proving more resilient than initially expected and corporate profitability remaining robust, markets have remained well sustained.

“However, significant rotations are underway across countries, sectors, and individual stocks as the environment adjusts to the ongoing regime shift.

“We think diversification and flexibility will continue to be key in enhancing portfolio resilience and long-term returns.

“We see a late cycle environment continuing this year and therefore maintain a moderate risk on stance. Within this stance, we expect a rotation towards real economy sectors such as industrials and dispersion across regions and asset classes.

“Secondly, high valuations of risk assets constrain our ability to raise our risk stance. Valuations alone, however, are unlikely to trigger a major correction. Instead, triggers would more likely arise from liquidity tightening or a deterioration in credit conditions.”

In a fast changing world, please see the attached paper for more details, with contributions also from Monica Defend, Head of Amundi Investment Institute and Philippe d’Orgeval deputy group CIO as they relook at their key investment convictions.

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Monica Defend

The global economy is adjusting to a regime of ‘controlled disorder’, where a tech revolution is reshaping an already multipolar world faced with geopolitical tensions and fiscal concerns, according to Amundi, Europe’s largest asset manager.  Geopolitics, the policy mix and higher inflation have become structural factors, and these concurrent long-term shifts will alter how the economic and financial cycle unfolds in 2026.

In its 2026 global investment outlook, the firm notes “The cycle keeps extending, supported by perceived ample liquidity, easing monetary policies, industrial policy shifts, and –so far– low pass-through of tariffs in the economy.  Multiple factors could reverse it, spanning from adverse events related to high levels of public debt in major economies, high market concentration and valuations, the credibility of central banks and where real rates may stabilise.

“Massive AI and Tech-related capex and a decent outlook for earnings could keep valuations higher for longer, but the shifts at play also point to higher structural risks and unpredictable turns in trade and capital flows.”

Monica Defend, Head of Amundi Investment Institute, says “The global economy is adapting to a new regime of “controlled disorder”.  Tech-led transformation, fiscal stimulus and industrial policy are keeping activity alive and leading to the emergence of new winners. Inflation becomes a structural theme investors must also factor into their allocations”.

Vincent Mortier, Group CIO of Amundi, adds “Diversification remains the most effective defence in a world of concentrated equity markets and high valuations. Investor portfolios must rebalance across styles, sectors, sizes and regions to mitigate risks and capture opportunities, notably in Emerging Markets and European assets.”

They note the following.

Central scenario: A transition, not a downturn

 In 2026, dovish central banks and global investment in tech, defence, and infrastructure, should continue to inject momentum into a phase of the cycle that would otherwise begin to slow.

• Global growth is moderating but proves broadly resilient, thanks to innovation led by capex and policies aimed at strategic autonomy.  Inflation risks persist due to pro-cyclical policies, ceaseless reconfiguration of supply-chains and challenges from the energy transition. Broadly appropriate monetary policy is increasingly pressured by fiscal dominance.  We forecast global GDP growth at 3.0% in 2026 and 3.1% in 2027 (from 3.3% in 2025), with DM at 1.4% and 1.6% on average, and EM at 4.0% and 4.1%.
• US growth should experience a shallow slowdown in the coming quarters, before picking up to reach 1.9% in 2026 and 2.0% in 2027, remaining below potential.  The current pace of AI and Tech-related investment seems unsustainable and should moderate before broad productivity gains materialise. Consumption should remain a key driver of the economy but moderate, due to above-target inflation, weaker income and labour market dynamics, where evidence shows that low-income households are facing constraints on affordability.  We expect the Fed to cut twice in the first half of 2026, to 3.25% and the USD to weaken, but the journey will not be linear.
• In Europe, we expect growth to remain below potential at 0.9% in 2026, then to recover at 1.3% in 2027, both in the Eurozone and in the UK.  The European journey depends on domestic demand, monetary-policy support and on the effective implementation of prospective reforms.  The aim of the latter is to transform the macro-financial system and to drive private investment towards strategic autonomy over the medium term.  The German plan is a game changer, but the region’s aggregate fiscal stance should stay neutral as high debt levels and fiscal rules push many countries towards consolidation.  Higher defence spending could further support the recovery.  We anticipate the ECB will ease beyond current market expectations, to 1.5% by mid-2026, and the BoE will bring down rates to 3.25%.
• Emerging Markets assets offer broad opportunities. EM has benefited from easier global financial conditions, balanced domestic policies and front-loaded export demand in 2025.  Growth will likely stabilise but keep outpacing that of developed economies.  Cautious monetary easing should continue, with no signs of fiscal dominance.  Asia will remain the primary growth engine, despite moderating growth in China (4.4% and 4.2%) and India (6.3% and 6.5%).  In LatAm, a series of elections could usher in more business-friendly administrations.  Structural forces are also at play: geopolitical realignment, supply‑chain reconfiguration and an intensifying technological race, in which Asia stands out.
• Risks to our central scenario stem from multiple fronts.  They are significant on the downside, but we also see some upside.  Adverse (geo)political or financial shocks – including fiscal dominance or financial repression – could trigger a market downturn, for example by de-anchoring expectation as to what level inflation or interest rates will stabilise, by disappointing on business performance or investments, or by tightening liquidity.  Conversely, reduced geopolitical or tariff tensions, higher fiscal- or deregulation-led investments or broader signs of AI-related productivity gains would improve the outlook.

Investment implications: Diversifying in an era of controlled disorder

Under the assumption of no economic recession in 2026, our call is moderately pro-risk.  Our allocation seeks to play growth through the tech-led recovery globally while diversifying into low‑correlated themes and a range of strategic hedges.

• In Fixed Income, we see a continuation of the diversification trend and are mindful of risks stemming from imbalances in the US.  The current backdrop calls for a tactical approach to duration and a neutral-to-slightly-short stance on sovereigns.  Quality credit becomes a core allocation for fixed income investors to diversify away from Treasuries, and it is clearly overweight.  We remain cautious on US High Yield and Japanese government bonds.  A positive stance on European bonds remains a key call for 2026, with a focus on peripheral bonds and short maturities, UK Gilts and investment grade credit, particularly in financials.  While sticky inflation calls for seeking opportunities in inflation break-evens.
• In Equities, sector and style allocation will drive performance in 2026.  We favour exposure beyond the AI-race into the broadening tech theme – including power energy, computing, materials needed to overcome physical constrains that are building – and a combination of defensive and cyclical themes.  We are overall neutral on US equities despite the Fed’s procyclical stance and will add on our equal-weighted approach given market concentration and high valuations.  European industrials and infrastructure should provide new entry points in H2 2026 to benefit from a structurally weaker USD and longer-term themes (defence spending, electrification and repatriation of assets from the US) and revived interest in the Eurozone if the German plan materialises and reforms advance. We are positive on European Financial, Industrial, Defence and Green-transition sectors, as well as on small and mid-caps.  Europe can still play the tech cycle through Industrials and Capital Goods.  We also seek opportunities into the expanding Asian tech ecosystem.  Japan can also benefit from the corporate reform and weaker Yen.
• We are overall positive on Emerging Assets.  EM bonds stand out for high income and diversification, while EM equities offer a diversified set of opportunities.  We like attractive yields in Hard Currency debt.  In Local Currency debt, we favour Central and Eastern Europe, selective parts of LatAm (Columbia, Brazil) and Asia (India, Philippines and Korea) for carry and valuation.  We are positive on EM equities and see notable pockets of opportunities favouring value and momentum styles in LatAm and Eastern Europe and selectively in Asia, in sectors linked to digital assets.  In Chinese equity, we expect to move from neutral to select positions in the tech sector and areas of clear comparative advantage (EV supply chain, renewable energy).  We are positive on India with a medium term horizon where the ‘Make in India’ transformation offers long term growth potential in many fields (manufacturing, consumption, infrastructure, global supply-chain shifts, financial inclusion technologies).  Key risks across EMs are a stronger US dollar and higher US Treasury yields.
• Diversification & Hedges. For real-return resilience, we favour greater allocation to alternative income and inflation hedges in real assets.  Private credit and infrastructure are well positioned to benefit from structural themes such as electrification, reshoring, AI, and robust demand for private capital, particularly in Europe.  Diversification should also structurally include a broader commodities exposure, in particular to gold, and selected currencies such as JPY, EUR, and emerging currencies that may benefit from a weaker dollar.  We favour high-carry currency such as the Brazilian Real or South African Rand and Asia.

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Vincent Mortier

Mounting concerns over large US fiscal deficits, along with consumers’ inflation expectations have started moving the markets. The issues around fiscal sustainability were further aggravated by discussion around the passing of the President Trump’s Big Beautiful Bill, the renewed interest in fiscal expansion in Europe (including German borrowing plans) and Japanese debt auctions according to Amundi in its monthly ‘Global Investment Views’.

Vincent Mortier, Group Chief Investment Officer at Amundi said, “Looking ahead, we could see some signs of weakness as markets start to focus on fiscal risks and tariffs. The big question is whether the allure of US assets is diminished by the fiscal issues, the challenge to the status quo by the US administration’s policies, and how that could affect US assets.

“We could very well see these old patterns changing in the future, but it is a long-term trend, not something that will happen within a short time frame. For now, trust in US institutions and their credibility remains intact – it may be questioned at various stages though.

“From an economic perspective, we see few themes playing out. We see economic activity decelerating in the US, with this year growth projections unchanged at 1.6%. Economic activity will be volatile due to net trade and consumption weakness. In the euro zone, we see credit growth and a continuation of improvement in the manufacturing sector. The defence and infrastructure push is likely to have positive effects on growth from 2026. The main question is how this will be financed.

“The impact of US tariffs on underlying inflation will be gradual. The tariffs’ impact on US inflation has been muted, and we haven’t seen higher consumer prices so far. But we are monitoring whether these are passed on to consumers and what impact they could have on corporate margins if companies are unable to pass on the costs. In the eurozone, the inflationary backdrop is slightly different, and inflation seems on track for deceleration.

“International trade negotiations will get increasingly difficult. The latest round of US-China talks in London indicated that China will remain a tough negotiator. Erratic trade policies may affect the appeal of US assets. Although section 899 (which we have always believed was a negotiation tactic) of the Big Beautiful Bill has now been scrapped, such provisions tend to increase uncertainty and volatility in the markets.

“We upgraded growth projections for some EM such as Brazil (2025), Mexico (2025), and India (2025 and 2026). In China, some recent data has been benign for example on retail sales. However, we would like to see a more sustained trend to convince us to upgrade our growth expectations. A boost to durable goods consumption from government subsidies should be supportive, but once the effect fades, this would weigh on growth. We stick to our projection of 4.3% for this year.

“We remain marginally positive on risk assets, with increased valuation discipline. Growth-inflation mix is less of a headwind, and we do not see a corporate earnings recession. But fiscal direction and the potential economic impact of uncertainty on tariffs and of geopolitical conflicts point to high volatility.”

Monica Defend, Head of Amundi Investment Institute and Chief Strategist added that “Our main investment convictions centre around the fact that debt and fiscal worries are rising, but curve steepening opportunities persist in fixed income. In an overall flexible stance, we moved to neutral on EU. Carry is attractive in corporate credit, but we acknowledge the bifurcation between high and low rated companies and large and smaller ones. We stay positive on investment grade, particularly through EU banks.

“Equities in US have been resilient, ignoring negative scenarios. Valuations have risen to rich levels, whereas those in Europe and Japan are close to their averages. As we enter into H2, the important point is to see which businesses are able to pass on the costs to consumers and preserve margins. Hence, valuations and quality both will become important.

“Emerging market at a time of strong growth and a weakening dollar. Volatility from international trade may be tackled by exploring domestic ideas. China presents a nuanced case where recent domestic data has been strong, but we stay neutral on equities, waiting for sustained improvement. For now, we explore other parts of Asia, LatAm and emerging Europe for equities and credit.

“In multi asset, we do not expect a recession in the US, and Europe, Japan and the EM world also show reasonable growth. But risks such as excess valuations, inflation resurgence, fiscal deficit and geopolitics remain. We rebalanced our stance slightly in duration and stay positive on risk but are doing so with more safeguards.”

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Monica Defend

The Amundi Investment Institute has released a white paper that explores the impact of Artificial Intelligence (AI) on various investment sectors and the winners and losers from this revolution.

Vincent Mortier, Group CIO, and Monica Defend, Head of Amundi Investment Institute noted “We believe that AI could have over the long-term a positive impact on productivity and GDP growth.

“However, the impact will not be linear across sectors, especially in the early phases. Those companies that are already investing heavily in AI technologies are the most likely to see benefits to revenues and/or profitability, but disappointments will happen given increased and new competitive pressure as well as the emergence of questionable business cases in light of the involved costs.

“With rising expectations around AI, the tech sector and US mega caps have outperformed strongly in recent times, leading to higher market concentration. In particular, the US tech companies have risen by 300% since the start of 2019, whereas non-tech stocks gained just 79%. This poorly discriminated

performance has been driven by robust earnings growth in the US Mega Cap, a supportive economic backdrop and the launch of ChatGPT 3.5 (2023) that led to a cycle of investment in AI technologies. Investors may need to consider a potential reset of the tech sector’s valuation levels and determine the companies which are likely to be the future winners and losers across the market.

“To help identify such companies we use a framework which categorises them into four AI types: tech providers, tech enablers, deployers and disruptors.

“The AI tech providers (e.g. semiconductor companies) are the early winners that are well-positioned to exploit the robust AI demand, while the AI tech enablers (e.g. hyperscalers/cloud providers, data centres) are heavy investors in Al, purchasing the majority of the leading-edge AI graphics processing units (GPUs). The AI deployers are those businesses that are already leveraging AI to transform their businesses whereas the AI disruptors are new entrants that will disrupt business processes by using AI technologies to achieve greater scalability.

“There will be winners and losers in most industries. However, to be a “winner” a company needs not only to be an early-mover in terms of investing in AI, but also possess a proprietary data advantage, an existing competitive edge based on market position and an ability to innovate successfully. Otherwise, any advantages from using AI technologies could be competed away.

“In our view, the future winners are most likely to be found among the existing competitively-advantaged companies.

“We highlight those industries which may see a meaningful impact from AI beyond the tech enablers and related suppliers, such as the software and services, media and entertainment, commercial and professional services and industrials sectors. Our attention is also focused on areas where AI will have a significant role, but the long-term outcome for growth and margins is uncertain. These include the financials, as this sector is an early-adopter, and health care, given it is already investing notable capital in AI.

“To finish, we highlight findings from interviews conducted by Amundi Technology with senior financial services executives over the last six months. For example, GenAI was discussed in almost every conversation, unlike in the past when it was rarely mentioned. In addition, the rapid pace of change those businesses are now facing was emphasised. Any time frame for optimising business plans that stretches beyond six months is considered by these executives as being long-term.

“This pace has ensured that the best-in-class companies are seeking partners to help them navigate their challenges. In particular, attention was drawn to the importance of using AI to unlock the power of proprietary data, given that some of the AI technologies will become commoditised. AI can do general things very well but may struggle when it comes to specifics.”

Read the white paper.

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The big questions are whether this can continue given the already strong market movements, and whether these earnings expectations are credible asks Amundi, Europe’s largest investment manager.

Vincent Mortier, Group Chief Investment Officer Amundi, says “On the economic front, the past strength led us to forecast a less ugly US slowdown, therefore extending the late-cycle environment. Nonetheless, we do not see this as a beginning of a new cycle and expect a slowdown around the middle of the year, and continued disinflation.

“The factors listed below will be crucial to understand the direction of the economy and markets:

• US labour market. A moderation in demand is likely, led by a shift to higher savings, lower consumption and weak labour markets (stress in SMEs employing a large part of the labour force), along with subdued investment.
• Monetary policy divergences, with inflation in focus. While the BoJ raised rates after 17 years, the Fed and the ECB are looking to cut rates but would like to be sure on the future direction of inflation first.
• US elections and geopolitics. Volatility may rise, as we enter a more active campaign phase. Geopolitics and the risks of high debt globally may provide long-term support to gold.
• Emerging markets’ (EM) resilience. We slightly upgraded our growth forecasts in EM, mainly due to Asia and India, on strong domestic demand and exports. However, our growth expectations for China do not change.”

“Given this backdrop, we outline our stance on select areas below:

• Cross Asset. Risk assets have priced in the improved outlook for earnings and growth and continue to benefit from positive market sentiment. Without taking additional risks, we maintain our positive duration stance. In bonds, we are also slightly positive on Italian BTPs but are cautious on JGBs. In equities, we are overall positive. We are marginally constructive on Japanese equities, while we are neutral in the US and now on Europe. In Emerging Markets, we are positive on bonds and on equities (India, Indonesia and South Korea). In FX, we see some strength in the USD, BRL and INR, but fine-tuned our views based on recent movements. Overall, we prefer a diversified stance, with sufficient protections on geopolitical tensions (oil) crucial in the current environment.
• In fixed income, the evolution of inflation will be the main driver of policy actions and with that in mind we remain active and positive on US and UK duration. In Europe, we are close to neutral now after the recent move up in yields and dovish messaging from the ECB, but are defensive on JGBs. In corporate credit, fundamentals remain strong for Investment Grade, but default rates in low-rated credit (CCC) are rising, particularly in the US. Therefore, higher dispersion based on quality is likely. Thus, our focus is on quality, and we find lower maturity credit selectively attractive. In Europe, we favour Investment Grade over High Yield, and maintain a preference for higher quality (BB) or short maturities.
• Excessive sentiment in US stocks supports an equal-weight approach. We stay balanced by exploring defensive idiosyncratic opportunities rather than any particular traditional sector. On the other hand, in industrials, high-quality materials is selectively an attractive sub-sector. In Europe, we prefer blending quality cyclicals with a defensive stance. Sluggish growth in the region will continue, which leads us to upgrade staples, while we are cautious on technology. Overall, we like quality, and value in Japan and the US.
• Our structural stance on EM is constructive. We combine factors such as fiscal risks and external vulnerability for countries with our bottom-up views. This allows us to be positive on India, Indonesia, South Korea, and in LatAm (Brazil, Mexico). EM debt should benefit from Fed rate cuts along with continuing EM disinflation. However, geopolitical and idiosyncratic risks keep us vigilant.”

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Governments and companies have a responsibility to decarbonise economies by setting testing emission reduction targets. The financial and investment industry is a vital catalyst in this race to Net Zero. As the European leader in asset management, and a member of the Net Zero Asset Manager initiative, we are developing solutions for clients that facilitate the transition while seeking strong risk-adjusted returns for investors, looking to respond to different investor needs and profiles.

These Net Zero strategies also support Amundi’s “ESG Ambition Plan 2025”^[2] as well as Crédit Agricole Group’s Societal Project, and in particular Amundi’s plan to achieve a faster path towards decarbonisation by designing solutions that seek to address investors’ requirements and preferences when it comes to responsible investment implementation. Engagement with issuers is key to fostering concrete changes and the funds will leverage Amundi’s robust active stewardship policy, in order to help companies integrate Net Zero trajectories in their business models.

All of Amundi’s actively managed Net Zero Ambition strategies have set a common intermediary objective of reducing their portfolios’ carbon intensity by 30% by 2025 and 60% by 2030 compared to 2019.^[3] However, we believe there is no “one size fits all” when it comes to Net Zero portfolio construction. As such we are proposing a suite of strategies that integrate ESG considerations with a Net Zero ambition pathway, using differing approaches with a common philosophy: assessing the credibility and feasibility of Net Zero by moving away from pledges towards action, and selecting companies best equipped to transition to Net Zero by 2050 with regards to their carbon reduction pathway.^[4]

Vincent Mortier, Group CIO at Amundi, said: “Trillions of euros of capital will be needed to speed the path to decarbonisation, which cannot be done by governments alone. The global asset management industry – which is expected to be managing over $145 trillion by 2025^[5] – has the scale to make things happen and trigger the momentum required to get the world to Net Zero.

This is why, as a European asset management leader, we are launching the Net Zero ambitions range across active, passive, and real assets, so investors can fuel the transition and put their savings to work, while earning investment returns. It is also critical to provide investors with a wide range of choices in order to help them align their investments to a Net Zero decarbonisation pathway.”

Amundi Funds Net Zero Ambition Global Equity and Amundi Funds Net Zero Ambition Top European Players assesses the credibility and feasibility of companies’ decarbonisation targets. In particular, Net Zero Ambition Global Equity uses a new proprietary methodology that places a cost value on carbon ‘externalities’ (such as emissions that impact us all) using the concept of ‘Environmental Capital’. Environmental Capital adjusts the company’s assumed Return on Invested Capital (ROIC) to include the costs and cap-ex the company will need to spend to reduce its carbon intensity.

These equity portfolios are large-cap focused and include 1) “Climate Champions”, which are the companies that are well advanced in their carbon mitigation; 2) “Climate Committed”, which are companies that are taking corrective actions to address climate challenges but need to invest more in decarbonisation; and 3) “Climate Enablers”, which are the companies that produce technologies or innovative products and services that pave the way towards a low carbon economy. Both portfolios are constructed to have carbon intensities aligned with Paris Aligned Benchmarks.^[6]

Net Zero Ambition Global Equity is managed by Piergaetano Iaccarino, Head of Equity Solutions, while Net Zero Ambition Top European Players is managed by Andrew Arbuthnott, Senior Portfolio Manager.

Fixed income

The Amundi Funds Net Zero Ambition Global Corporate Bond fund seeks to achieve a combination of income and capital growth while aiming to reduce its carbon footprint in line with the benchmark (Solactive Paris Aligned Global Corporate), which itself has a decarbonisation trajectory.

The strategy deploys a highly selective approach focusing on companies that have set themselves a Net Zero trajectory, whilst engaging with those operating in high impact climate sectors as they transition to become Net Zero compatible.

The strategy favours, amongst other climate and ESG metrics, issuers with low carbon intensity, issuers with a decarbonisation objective, as well as issuers with forward-looking objectives such as SBTi targets and credible temperature trajectories.

The strategy is managed by Nadine Abaza, Global Credit PM and Steven Fawn, Head of Global Credit at Amundi.

The Amundi Funds Net Zero Ambition Pioneer US Corporate Bond fund identifies opportunities primarily from the US Corporate bond universe (~7,500 bonds, ~850 issuers) and focuses on low carbon emissions at the portfolio level seeking to achieve a combination of income and capital growth (total return) through Sustainable Investments. The fund aims to reduce the carbon intensity of its portfolio and maintain superior carbon metrics relative to the benchmark (MSCI US Corporate Paris-Aligned Index).

The fund is managed by Jonathan Duensing, Head of Fixed Income US & Portfolio Manager.

Real estate

The Amundi Real Estate European Net Zero Ambition Strategy is a real estate climate impact strategy that employs a multi-sector and multi country allocation, with a commitment to maintain the carbon footprint of the portfolio below a 1.5 C° trajectory model, in line with the Paris Agreement.

In terms of geography, the strategy will focus primarily on the deeper, more mature markets in Western Europe, while also investing in a selection of European peripheral markets. It will predominantly target offices in prime locations benefiting from high demand and home office megatrends, as well as sectors such as logistics, residential, retail, and hotels.

The strategy aims to pay a regular coupon which will be accompanied by growth in net asset value over the long term in the belief that, in the future, decarbonised assets will be more attractive to tenants and investors.

This is an opportunity for the strategy to potentially benefit from an attractive acquisition value and rental indexation while preserving long term value thanks to the increasing energy performance of the buildings held in the portfolio.

The aim is to maintain the carbon footprint of the portfolio below the CRREM^[7] 1.5°C trajectory model at all times and to target a reduction of -40% GHC emissions by 2030.

The strategy is managed by Benjamin Launay, Conducting Officer – Real Estate.

Multi-asset

Amundi Funds Net Zero Ambition Multi-Asset is a global multi-asset strategy that seeks to reduce the carbon intensity of the portfolio while financing the energy transition. The Fund aims to provide investors with a well-diversified^[8] and actively managed strategy with a clear focus on climate.

The Fund’s strategic allocation is based on “climate-aware” market scenarios (such as the implications of the road to Net Zero on the global macroeconomic environment) while issuers selection relies on both financial and climate-related metrics (e. g. carbon emissions, GHG reduction targets, green financing).

The strategy is managed by Raphaël Sobotka, Head of Diversified Premia & Dynamic Risk Strategies and Jean-Gabriel Morineau, Portfolio Manager.

Emerging markets

The Amundi EM Equity Target Net Zero is an active, fundamental strategy that uses a low carbon approach by implementing bottom-up analysis across market capitalisations to identify emerging market companies most likely to achieve their Net Zero goals. The objective is to deliver a carbon footprint aligned with the MSCI EM Climate PAB Index with alpha generation, by targeting the incorporation of carbon transition costs into the valuations of companies. This is one of the first strategies on the market focused on CO2 reduction in emerging market equities.

The strategy is managed by Mickaël Tricot, Portfolio Manager and Andrea Salvatori, Senior Portfolio Manager & Head of ESG Strategies – Emerging Markets.

Climate ETFs

Amundi has launched one of Europe’s most comprehensive passive suites of Net Zero strategies across both Equity and Fixed Income, with over 30 climate ETFs aligned with the goals of the Paris Agreement.

Amundi’s ETF, Indexing and Smart Beta business line offers investors a simple way to invest in Climate Transition and Paris-Aligned benchmarks across World, Europe, EMU, US, and emerging market exposures, with the aim of: 1) helping to limit global warming to 1.5° C with EU Climate Transition and Paris-Aligned Benchmarks; and 2) implementing annual decarbonisation and ambitious carbon intensity reductions relative to parent index, by offering investors a cost-efficient range to suit their objectives.

———

Notes:
[1] Net Zero Greenhouse Gas emissions are achieved when emissions resulting from human activity are balanced globally by removals over a specified period.
[2] For more information on Amundi’s ESG 2025 Plan announced in December 2021, please see: https://about.amundi.com/article/new-esg-plan-2025. Please refer to the Amundi Responsible Investment Policy and the Amundi Sustainable Finance Disclosure Statement available at https://www.amundi.com/institutional/responsible-investment-amundi-s-core-commitment
[3] All passively managed Net Zero Ambition funds comply with EU CTB/PAB requirements
[4] The disclosed information are as of 17 April 2023 and constitute our judgment and are subject to change without prior notice. There can be no guarantee they will be met.
[5] https://www.pwc.com/ng/en/press-room/global-assets-under-management-set-to-rise.html
[6] For further information on Paris-Aligned Benchmarks, please see: https://www.msci.com/our-solutions/climate-investing/climate-indexes/eu-paris-aligned-benchmark
[7] The CRREM (Carbon Risk Real Estate Monitor) is a tool that defines the decarbonisation paths for 2050 building by building. CRREM is the partner of SBTi for Real Estate sector.
[8] Diversification does not guarantee a profit or protect against a loss

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The actively managed ESG Improvers range was launched in 2020 and is available to institutional and retail investors seeking to capture ESG-related growth potential at an early stage.

Amundi has extended the ESG Improvers family of funds to include two fixed income investment fund strategies:

• Amundi Funds Global Corporate ESG Improvers Bond, which seeks to outperform the ICE Bank of America Global Large Cap Corporate Index (USD Hedged)
• Amundi Funds Pioneer Global High Yield ESG Improvers Bond, which seeks to outperform the ICE Bank of America Global High Yield Index (USD Hedged)

As with the equity asset class, the investment teams use a dynamic forward-looking approach to identify bond issuers with promising ESG trajectories through a strategy based on three principles:

• Exclude issuers that are not aligned with Amundi’s ESG framework;
• Select issuers that are fundamentally attractive and that are showing or expected to show real and material progress on ESG. These companies are identified through a fundamental bottom-up investment process which integrates Amundi’s proprietary ESG methodology;
• Actively engage with company management throughout the investment process to understand and positively impact the company’s financial and ESG credentials as a whole, and build a portfolio of high conviction holdings.

The range will enable investors to apply their portfolio asset allocation from among the ESG champions of tomorrow.

Responsible investment at the heart of the Fund’s approach

As a pioneer in responsible investing, Amundi manages over €798bn in responsible investment assets with over 10,000 issuers rated with respect to ESG criteria. Amundi’s recognised ESG analysis process will be fully integrated into the investment approach of the Fund.

Benefiting from the proven experience of Amundi Research and Portfolio Management teams, the strategy of Amundi Funds ESG Improvers combines fundamental and ESG analysis to fully contextualise any potential investment.

Vincent Mortier, Deputy CIO at Amundi, commented: “With the addition of the global corporate bond and global high yield strategies, investors can further benefit from this innovative strategy in fixed income, which has already been successfully applied to the equity asset class.”

These sub-funds are available within the Amundi Funds SICAV and are currently registered in the following countries:

• Global Corporate ESG Improvers Bond: Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Norway, Switzerland, Sweden, the UK
• Pioneer Global High Yield ESG Improvers Bond: Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Norway, Switzerland, the UK

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