Amundi Funds US Short Term Bond | Amundi HK Retail

Amundi Funds US Short Term Bond

Thinking how to position amid the Fed's uncertain rate cut path?
US short term bonds help investors to capture the income potential while keeping volatility under control.

USSTB cycling

1. The Fund invests mainly in U.S. dollar denominated short-term bonds and in comparable securities that are denominated in other currencies, provided that the currency exposure is principally hedged back to the U.S. dollar.

2. Investing in this Fund may expose investors to exchange/currency risk and European sovereign-debt crisis risk. It may also involve risks associated with debt securities and risk of investment in ABS/MBS.

3. The Fund may use financial derivative instruments (FDI) for hedging, for efficient portfolio management and as a way to gain exposure (long or short) to various assets, markets or other investment opportunities. FDI exposure may involve additional risks such as credit/counterparty risk, volatility and liquidity risk, valuation risk and over-the-counter transaction risk. The Fund may be leveraged and suffer losses from its FDI usage.

4. RMB is currently not freely convertible and is subject to exchange controls and restrictions. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.

5. For hedged classes, there is no guarantee that the hedging techniques employed by the manager will fully and effectively achieve the desired result and effect. Furthermore the volatility of the hedged classes may be higher than that of the equivalent class denominated in the Fund’s base currency. If the counterparties of the instruments used for hedging purpose default, investors of the hedged classes may be exposed to currency exchange risk of the currency of denomination of the relevant class on an unhedged basis and may therefore suffer further losses.

6. For distribution class, the Fund may at its discretion determine to pay dividends out of income or capital or effectively out of capital of the Fund. Payment of dividends out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund’s capital or payment of dividends effectively out of the Fund’s capital (as the case may be) may result in an immediate reduction of the net asset value per share of the Fund.

7. The value of the Fund can be volatile and could go down substantially. Investors may suffer losses.

8. Investors should not make investment decisions solely based on this marketing material.

Why Short Duration now?

Reason 1 - Seize yield opportunities from short term bonds

Short term bonds are providing similar yields to longer-dated bonds. Investors can enjoy the potential income streams with less duration risks (sensitivity of the bond's price to the change in interest rates).

 

Source: Amundi and Bloomberg, as of 31 December 2024. For illustrative purposes only. The Fund refers to Amundi Funds US Short Term Bond Class USD A2 (C). Indices used: UST 1Y and UST 3Y – US Fed Rates as of 31 December 2024. US Corporates – Bloomberg Us Corporate Investment Grade, US Aggregate – Bloomberg US Aggregate Index. Past performance is no guarantee of future results. 

Reason 1 - Seize yield opportunities from short term bonds

USSTB annualised dividedn yield Dec 2024 EN

Reason 2 - Keep volatility in check regardless of the direction of interest rates

The Fund primarily invests in short-term bond with an average duration of 0.40 years^, reducing its sensitivity to interest rate fluctuations while providing a defensive position to navigate market volatility.

Source: Amundi and Bloomberg, as of 31 December 2024. For illustrative purposes only. The Fund refers to Amundi Funds US Short Term Bond Class USD A2 (C). Indices used: US Corporates – Bloomberg Us Corporate Investment Grade, US Aggregate – Bloomberg US Aggregate Index. Past performance is no guarantee of future results. 

Reason 2 - Keep volatility in check regardless of the direction of interest rates

Volatility USSTB Dec 2024 EN

Fund Features

Monthly Dividend Distribution

Aims to provide a monthly dividend of 6.8% (A2 MTD3 USD, as of December 2024. Dividend payment is not guaranteed)Important information 6

Annualized yield USSTB Dec 2024 en

Source: Amundi, as of Decembe 2024. Positive distribution yield does not imply positive return. *Dividend is not guaranteed. The Fund may pay dividends out of its capital. Annualized dividend yield =(1+monthly distribution per unit/ex-dividend NAV)^12-1. The annualized yield may be higher or lower than the actual annual yield. Please refer to point 6 of the "Important Information".Source: Amundi, as of November 2024. Positive distribution yield does not imply positive return. *Dividend is not guaranteed. The Fund may pay dividends out of its capital. Annualized dividend yield =(1+monthly distribution per unit/ex-dividend NAV)^12-1. The annualized yield may be higher or lower than the actual annual yield. Please refer to point 6 of the "Important Information".

An Award-Winning Strategy Managed by Top Rated Fund Manager

 

Morningstar4 stars

 

4 stars rating from Morningstar

Data as of 31 December, 2024

 

benchmark 2023

 

 

Benchmark Fund of the Year Awards 2023 House Awards – Mutual Fund – US Fixed Income

 

 

 

 

citywire AAA

 

 

Fund Manager Noah Funderburk Amassed 20 consecutive months of AAA ratings from Citywire since April 2023.

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This document is not intended as an offer or solicitation with respect to the purchase or sale of securities, including shares or units of funds. All views expressed and/or reference to companies cannot be construed as a recommendation by Amundi.  Opinions and estimates may be changed without notice.  To the extent permitted by applicable law, rules, codes and guidelines, Amundi and its related entities accept no liability whatsoever whether direct or indirect that may arise from the use of information contained in this document.

This document is for distribution solely to persons permitted to receive it and to persons in jurisdictions who may receive it without breaching applicable legal or regulatory requirements. This document has not been reviewed by the Securities and Futures Commission in Hong Kong.

This document is prepared for information only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment.  Investors should not only base on this document alone to make investment decisions.

Investment involves risk. The past performance information of the market, manager and investments and any forecasts on the economy, stock market, bond market or the economic trends of the markets are not indicative of future performance.  Investment returns not denominated in HKD or USD is exposed to exchange rate fluctuations. The value of an investment may go down or up.

This document is not intended for citizens or residents of the United States of America or to any «U.S. Person» , as this term is defined in SEC Regulation S under the U.S. Securities Act of 1933.