Treasury

Amundi is a major player in treasury management in Europe and across the world. Liquidity management has become very challenging for institutional and corporate clients. We provide well-adapted and clear solutions to investors seeking products combining liquidity and performance1 in an increasingly restrictive and low return environment.

Investment philosophy

Our philosophy is based on a conservative approach. Our key priorities are aligned with what our clients require most from a liquidity solutions fund: security, liquidity and search of performance consistency2.

Risk management at the forefront

Based on a longstanding expertise of more than 30 years, we have built a strong culture of liquidity and risk management. Risks management is based on rigorous procedures, strict guidelines and sophisticated tools.

The investment and risk teams are highly experienced. Providing products that clients can trust has placed us in a position of strength in weathering last years’ financial crises.

Treasury Letter

Treasury Letter 

September / October 2019

Weekly Liquidity

Letter  

Primary Market View

Letter

Key figures

N°1

in Money Market Management in Europe5

€ 233 Bn 

of AuM3

> 30 years

of Liquidity fund management experience

Stratifying excess cash

Segmenting the time horizon of the cash needs should enable investors to manage their risk and optimise their returns and choose the most appropriate investment solution for each segment of cash.

Four areas of expertise answering specific investors' needs

 

 

01 I Money Market: investors looking for daily liquidity and security

An attractive and diversified alternative to traditional cash deposit. Investing in money market funds offer easy access to your investment, daily liquidity with same day settlement while diversifying risks. They invest in high quality instruments and provide strong diversification. As required by investors, money market funds are managed within strict and predefined guidelines to offer preservation of capital, liquidity, transparency and performance consistency3.

 

 

02 I Ultra Short Term Bonds: investors looking for liquidity, yet higher returns than money market funds

Step Out of Cash: optimise your cash allocation under longer time horizon. Given the short rates6 negative context, investors may enlarge their investment universe by considering ultra short term bond funds which:

  • Invest mainly in bonds with maturities up to five years
  • Offer active management with a conservative frame-work
  • Monitor duration to exploit the interest rate premium

 

 

03 I Short Term Absolute Return (STAR) Bonds: investors looking for flexibility and low volatility

Unconstrained approach, well-adapted to uncertain markets: aim to achieve positive absolute returns over market cycle while keeping a low level of volatility.

  • Broad investment universe and large diversification
  • Opportunistic security selection and tactical arbitrage
  • Limited volatility (<=SRRI 3*)

* The synthetic risk and reward indicator (SRRI) is based on the volatility of the fund over a scale from 1 to 7, according to its increasing level of volatility.

04 I Securitised Assets: investors looking for diversification within the fixed income universe

Investors are also looking for a way to diversify their investments. This goal may be achieved by investing in European securitizations which usually provide:

  • An access to a specific asset class, with a low level of correlation against the rest of the fixed income universe
  • Higher returns than other credit bonds with the same ratings6
  • Credit quality, via a rigorous analysis and a very selective picking approach of securities

(1) Past performance is not indicative of future returns.

(2) Amundi’s treasury management funds/sub-funds do not offer a guarantee of capital or performance.

(3) Source: Amundi figures as of September 30, 2019.

(4) Source: UN PRI, United Nations Principles for Responsible Investment 2018. Asset classes/expertise are defined from Lipper FMI’s Fund Sector and Fund Feature database.

(5) Source: Broadridge Funfile - End of June 2018 - Open-ended Funds domiciled in Europe and in related offshore territories.

(6) Past market behaviours are not reliable indicators for future behaviours.

This information is exclusively intended for “Professional” investors within the meaning of the MiFID Directive 2004/39/EC of 21 April 2004, and articles 314-4 and following of the General Regulations of the AMF. It is not intended for the general public or for non-professional individual investors within the meaning of all local regulations, or for “US Persons”, as defined in the Securities and Exchange Commission’s “Regulation S” under the 1933 U.S. Securities Act.

This non-contractual information does not under any circumstances constitute an offer to buy, a solicitation to sell, or advice to invest in financial instruments of Amundi or one of its affiliates (“Amundi”).

Investing involves risks. The performance of the strategies is not guaranteed. In addition, past performance is not in any way a guarantee or a reliable indicator of current or future performance. Investors may lose all or part of the capital originally invested.

Potential investors are encouraged to consult a professional adviser in order to determine whether such an investment is suitable for their profile and must not base their investment decisions solely on the information contained in this document. 

Amundi assumes no liability, either direct or indirect, resulting from the use of any of the information contained in this document, and shall not under any circumstances be held liable for any decisions taken on the basis of this information. This information may not be copied, reproduced, modified, translated or distributed, without the prior written approval of Amundi, for any third person or entity in any country or jurisdiction which would subject Amundi or any of its products to any registration requirements within these jurisdictions or where this might be considered unlawful. 

This information is provided to you based on sources that Amundi considers to be reliable, and it may be modified without prior warning.