Amundi has launched Amundi Funds Multimanagers Long/Short Equity, a sub-fund of its Luxembourg-domiciled umbrella fund.
The newly launched Ucits III fund uses long/short and equity arbitrage strategies as well as volatility management.
Managed by Fabien Esperto, the fund aims to outperform the Euro OverNight Index Average (Eonia) by 5% per year while maintaining a maximum level of yearly ex-post volatility of 8%. (article continues below)
The manager seeks to capitalise on the divergence in performance between securities, sectors or geographic regions rather than on global market trends.
In order to protect against risks, Esperto can allocate up to 10% of the portfolio’s assets to volatility strategies. This approach is intended to allow him to diversify further as well as moderate the portfolio’s correlation to equities and offset the impact of market downturns.