Amundi has joined with Wells Fargo to take over management of one of its US equity funds.
The sub-fund of Amundi’s Luxembourg Sicav was formerly Amundi Funds Equity US Concentrated Core, managed by TCW Investment Management Company until 3 May.
The previous fund was benchmarked against the Russell 1000 Growth index, while the new fund will seek to outperform the MSCI USA Mid Cap over a five-year period, charging a 20 per cent performance fee.
Christian Pellis, Amundi global head of distribution, says the fund is a response to investor demand for products to capture performance in the US domestic market and to complement large cap investment as part of their asset allocation.
Bryant VanCronkhite, co-team leader of the fund at Wells Fargo Asset Management, says they will use their “unique accounting-based investment philosophy” . “We’ve found this niche to provide exceptional risk-adjusted returns in the past.”
The team will use a bottom-up approach seeking cash-rich companies with undervalued assets or growth potential and limited downside risk. It will hold 50 to 70 equities that derive 85 per cent from the US domestic market.
Estimated ongoing charges for the fund are 2.2 per cent.