Amundi launch volatility fund

2014-10-10

Amundi is to launch a new volatility fund, Amundi Funds Absolute Volatility Arbitrage Plus, which will be a UCITS IV-compliant sub-fund of the Luxembourg SICAV.

The fund aims to use volatility arbitrage strategies to generate an annual performance of over EONIA capitalised 4% over a minimum investment horizon of 3 years and with a maximum risk budget of VaR8%.

“Within financial markets, flaws and valuation gaps can be observed and these imperfections form the core of arbitrage strategies,” said Eric Hermitte, the fund manager of Amundi Funds Absolute Volatility Arbitrage Plus. “We have a track record of more than 10 years in this type of strategy and strive, via the Amundi Funds Absolute Volatility Arbitrage Plus sub-fund, to generate performance by making the most of these market inefficiencies.”

Amundi Funds Absolute Volatility Arbitrage Plus will be managed by an investment team comprised of 9 professional fund managers with on average more than 12 years’ experience in volatility management.