St James's Place has appointed Amundi Asset Management to manage a new £2.8bn Global Absolute Return Multi-Strategy mandate that is targeting an absolute return of cash plus 5% to 6%.
Amundi's Milan-based global absolute return team, headed by Davide Cataldo, will manage the sterling-denominated mandate on behalf of UK investors.
The asset manager said the strategy will employ "both directional and relative value investment ideas" in the portfolio, to achieve a high level of diversification and with a "focus on downside protection, utilising multiple layers of risk management".
The strategy, which is classified as Article 8 under SFDR, will be managed using Amundi's proprietary ESG analysis and rating methodology to integrate ESG.
As of 30 September 2021, Amundi had more than €800bn in responsible investing assets.
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Philippe d'Orgeval, CEO of Amundi UK, said: "We are honoured to manage this mandate on behalf of UK investors.
"As we enter a challenging investment environment over the next few years, we are seeing an increase in demand for our multi-asset capabilities as clients highlight the increased need to incorporate downside protection whilst seeking diversification and positive absolute returns."
The aim of the strategy is to deliver an absolute return of cash plus 5% to 6% over a market cycle, by generating positive returns in all market environments in the medium term.
Matteo Germano, head of multi-asset and CIO Italy at Amundi, added: "With market challenges ahead such as higher inflation, lower growth, and the end of excessive liquidity, investors need to consider a range of approaches for their portfolio construction.
"In this context, a multi-asset strategy underpinned by a dynamic and consistent investment process is well suited to protect investors from these risks. We are delighted to offer UK investors a solution that helps them tackle their long-term challenges."
