St James’s Place has chosen Amundi to manage a £2.8bn global absolute return multi-strategy mandate.
The mandate forms part of SJP's Global Absolute Return Fund, which is UK-domiciled.
It will target an absolute return of cash plus 5-6 per cent over a market cycle, based on a strategy that seeks to deliver positive returns in all market environments.
Philippe d’Orgeval, chief executive, Amundi UK, said as the markets enter a “challenging” investment environment, the company is seeing an increase in demand for its multi-asset capabilities.
He said clients have highlighted a rising need to incorporate downside protection, while seeking diversification and positive absolute returns, adding: “We look forward to building our partnership with St. James’s Place and help their clients achieve their financial objectives.”
Matteo Germano, head of multi-asset, Amundi, added that with these market challenges, including 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.”
Inflation in developed markets has been soaring in recent months, with the UK's price rises hitting 5.5 per cent in the 12 months to January.
This has caused global markets to fluctuate wildly, alongside fears of a Russian invasion of Ukraine.
Amundi’s global absolute return team is based in Milan and led by Davide Cataldo.
The company is a European asset manager headquartered in Paris, and manages over €2tn (£1.67tn), as at December 31 2021.
The fund will be classified as article 8 under the EU’s sustainable finance disclosure regulation and is UK-domiciled.
sally.hickey@ft.com
