amundi funds bond global aggregate citywire asia hk_final

Amundi Funds Bond Global Aggregate

Tapping value wherever it exists

This material is solely for the attention of "professional” investors, not for public distribution. (see more details and definitions at the end of the document).

Citywire December 2012

Amundi Funds Bond Global Aggregate - Citywire - November 2012 - page 2

A broad universe Bonds, investment grade credit, emerging bonds, high yield,

ABS and currencies

Flexible style adapted to

“full cycle” management

Combining long-term macro-views with short-term tactical

management

Dynamic asset allocation to tap value wherever it exists

$509M AuM with a focus to invest in liquid assets

Stability of team and

resources

7-year track record1 for the flexible bond process

(Aggregate) and managed by Hervé Hanoune since 2008

Supported by all the London global fixed income teams and

the infrastructure of Amundi Group worldwide

Solid track record 12.2%1 annualised net performance since inception versus

5.4%1 for the reference indicator1

Long-term, robust, macro-management in a global aggregate universe

Source: Amundi, September 2012. Information given for indicative purposes only, may change without prior notice. Past performance is not necessarily a guide to future performance. Investors may not get back the amount they originally invest The sub-fund does not offer any capital or performance guarantee. Please refer to Amundi Funds prospectus for further details about the assets authorised in the sub-fund and regarding the investment and management style of the sub-fund 1 Inception date of Amundi Funds Bond Global Aggregate 30/10/207, details of performance page 10


$918.9 Bn AUM1

Global Fixed Income (GFI) Platform AuM $545 billion

Illustration given for indicative purposes only. May change without prior notice.

1.Amundi Group figures as at September 2012.

17Quantitative

Research

18Credit

Analysts

17 Strategy &EconomicResearch

Global Corporate

Global Aggregate

Emerging Market Debt

Global Currency

10Emerging

Equity PM and analysts

Global Sovereign

London-based team

Amundi is a leading fixed income manager


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD MTD 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD MTD

EM external

debt

14.41%

US Credit

10.40%

EM external

debt

13.12%

EM (MSCI)

51.59%

EM (MSCI)

22.45%

EM (MSCI)

30.31%

EM (MSCI)

29.18%

EM (MSCI)

36.48%

US

Treasury

13.74%

EM (MSCI)

74.50%

EM (MSCI)

16.36%

US

Treasury

9.81%

EM external

debt

16.61%

EuroStoxx

4.89%

US

Treasury

13.52%

US

Treasury

6.75%

US

Treasury

11.79%

Asia Pacific

(MSCI)

38.07%

DM exp. US

(MSCI)

17.59%

EuroStoxx

21.28%

DM exp. US

(MSCI)

23.47%

Asia Pacific

(MSCI)

12.28%

Euro

Treasury

8.37%

Global High

Yield

57.69%

Global High

Yield

15.07%

EM external

debt 8.46%

Global High

Yield

16.34%

DM exp. US

(MSCI)

2.36%

Euro

Treasury

9.49%

EU Credit

6.47%

US Credit

10.52%

DM exp. US

(MSCI)

35.28%

Asia Pacific

(MSCI)

16.30%

Asia Pacific

(MSCI)

21.04%

EuroStoxx

15.12%

US

Treasury

9.01%

EU Credit

-2.56%

Asia Pacific

(MSCI)

34.46%

Asia Pacific

(MSCI)

14.32%

US Credit

8.35%

S&P 500

15.88%

EM external

debt 1.65%

US Credit

9.39%

Euro

Treasury

5.54%

EU Credit

8.75%

Global High

Yield

29.33%

Global High

Yield

11.99%

DM exp. US

(MSCI)

10.86%

Asia Pacific

(MSCI)

14.51%

DM exp. US

(MSCI)

8.62%

US Credit

-3.08%

EM external

debt

28.18%

S&P 500

12.78%

Global High

Yield 3.63%

EuroStoxx

11.12%

Global High

Yield 1.63%

EU Credit

6.35%

Global High

Yield 2.44%

Euro

Treasury

8.23%

S&P 500

26.38%

EM external

debt

11.73%

EM external

debt

10.73%

S&P 500

13.62%

EuroStoxx

6.79%

EM external

debt

-10.91%

DM exp. US

(MSCI)

27.75%

EM external

debt

12.04%

Euro

Treasury

2.63%

EU Credit

10.52%

S&P 500

1.16%

Global High

Yield 1.28%

EM external

debt 1.36%

Global High

Yield 2.41%

EM external

debt

25.66%

S&P 500

8.99%

Euro

Treasury

6.48%

Global High

Yield

12.20%

EM external

debt 6.28%

Global High

Yield

-25.24%

S&P 500

23.45%

US Credit

8.47%

EU Credit

2.17%

EM (MSCI)

9.92%

Euro

Treasury

0.70%

EuroStoxx

-2.69%

EM (MSCI)

-4.91%

EM (MSCI)

-7.97%

EuroStoxx

15.68%

EU Credit

7.47%

Global High

Yield 5.65%

EM external

debt 9.88%

US Credit

5.11%

S&P 500

-38.49%

EuroStoxx

21.14%

US

Treasury

5.87%

S&P 500

0.00%

DM exp. US

(MSCI)

9.48%

US Credit

0.66%

S&P 500

-10.14%

S&P 500

-13.04%

Asia Pacific

(MSCI)

-9.79%

US Credit

7.70%

Euro

Treasury

6.94%

EU Credit

4.09%

US Credit

4.26%

S&P 500

3.53%

Asia Pacific

(MSCI)

-43.23%

US Credit

16.04%

DM exp. US

(MSCI)

4.90%

DM exp. US

(MSCI) -

14.82%

US Credit

8.97%

Asia Pacific

(MSCI)

0.59%

DM exp. US

(MSCI)

-15.21%

EuroStoxx

-20.25%

DM exp. US

(MSCI)

-17.52%

EU Credit

6.34%

EuroStoxx

6.90%

S&P 500

3.00%

US

Treasury

3.08%

Euro

Treasury

3.07%

EuroStoxx

-44.37%

EU Credit

14.41%

EU Credit

4.79%

EuroStoxx

-17.05%

Euro

Treasury

8.67%

EU Credit

0.53%

Asia Pacific

(MSCI)

-29.20%

Asia Pacific

(MSCI)

-21.84%

S&P 500

-23.37%

Euro

Treasury

3.13%

US Credit

5.24%

US

Treasury

2.79%

Euro

Treasury

1.84%

Global High

Yield 1.95%

DM exp. US

(MSCI)

-45.09%

Euro

Treasury

4.16%

Euro

Treasury

1.02%

Asia Pacific

(MSCI) -

17.31%

Asia Pacific

(MSCI)

8.19%

EM (MSCI)

0.46%

EM (MSCI)

-31.80%

DM exp. US

(MSCI)

-22.61%

EuroStoxx

-37.30%

US

Treasury

2.24%

US

Treasury

3.54%

US Credit

1.96%

EU Credit

0.47%

EU Credit

0.34%

EM (MSCI)

-54.48%

US

Treasury

-3.57%

EuroStoxx

-5.81%

EM (MSCI)

-20.41%

US

Treasury

1.42%

US

Treasury

-0.65%

Sources: Bloomberg, Amundi. Data as of 23rd October 2012. Information given for indicative purposes only. Past market data are no reliable indicators for current or future data.

Opportunities are abundant but change over investment cycles…

Spread = 16.3%

Spread = 9.1%


In the prevailing low rate environment, a global fixed income manager can add value through active duration management and asset class diversification.

A challenging environment for government bonds

Information given for indicative purposes only. Past market data are no reliable indicators for current or future data.


Portfolio construction is as important as market views

Active management is not only a function of views. The “risk paradigm” has important implications for portfolio construction.

The “risk on / risk off” behaviour prevailing on financial markets today is an important consideration when deciding on the amount of risk to deployed.

Source: Amundi as at end 2011. Factor analysis of mixed ‘macro’ asset factors, 2005 & 2011 sample. Information given for indicative purposes only. Please refer to Prospectus of Amundi Funds and the key investor information documents pertaining to Bond Global Aggregate sub-fund for more information on risks involved

Figure 1 Biplot: Factor analysis of mixed ‘macro’ asset factors

‘Risky’ Assets

‘Safe-haven’ Assets

Factor analysis of mixed ‘macro’ asset factors, 2011 sample

CURRENCIES

TREASURIES

CREDIT

EQUITIES

Factor analysis of mixed ‘macro’ asset factors, 2005 sample


Government Bonds

Global Investment Grade

Global Currencies

One of the most global benchmark universe: Barclays Global Aggregate Hedged

• Global Investment Grade

• 78% sovereign, 17% credit, 5% covered & ABS

• > 13,000 issues & 2,500 issuers

• > 70 Countries

Covered Bonds & ABS

Global HY & EM B

en

ch

ma

rk u

niv

ers

e

Off-b

enchm

ark

un

ive

rse

Amundi Funds Bond Global Aggregate

Use one of the broadest benchmark available

Investment in currency further more

Possibility to invest1 in High Yield (<20%) or emerging market debt (<33%) if market conditions are right

Source: Amundi, September 2012. Information given for indicative purposes only, may change without prior notice. The percentages given for high yield and emerging market debt are internal constraints only. 1 For further details on the investment policy, please refer to the Amundi Funds Prospectus

A very broad fixed income investment universe

Amundi Funds Bond Global Aggregate - Citywire - November 2012 - page 8 Source: Barclays. Past performance is not necessarily a guide to future performance. Investors may not get back the amount they originally invest

Why is global aggregate relevant?

All-weathered universe


Amundi Funds Bond Global Aggregate: best Global Fixed Income

Sources: Morningstar, Amundi. Data as at end-September 2012. NAV-to-NAV, with dividend reinvested. Past performance is not necessarily a guide to future performance. Investors may not get back the amount they originally invest Data Source - ©[2012] Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The rating concerns the IU class. Performance for Amundi Funds Bond Global Aggregate AU-C and Templeton Global Total Return A Acc $ for September 2012.

A “full cycle” product

performer since inception


Attractive performance

* Net of management fee of 0.45% p.a., admin fee of 0.2%. and perf. fee of 20% above benchmark p.a. Source: Amundi – Since inception performance from adoption of current investment process. *Period: 1 January 2012 to 31 October 2012 NAV-to-NAV, with dividend reinvested. Net performance of Amundi Funds Bond Global Aggregate (IU-C). Past performance is not necessarily a guide to future performance. Investors may not get back the amount they originally invest

Calendar Year Net Performance as at 31st October 2012

Annualized performance Annualized

out-performance Information

ratio

1 year +16.09% +10.01% 1.9

3 years +8.40% +3.35% 0.5

Since Oct. 2007 +12.21% +6.85% 1.0

0.08%

7.79%

31.67%

10.78%

-4.92%

19.03%

12.21%

1.07%

5.58%5.09% 4.61% 5.40% 5.08% 5.37%

-5%

0%

5%

10%

15%

20%

25%

30%

2007 2008 2009 2010 2011 2012 Since Inception(Annualised)

Amundi Funds Global Aggregate USD

Barclays Global Aggregate (Hedged USD)

.

Amundi Funds Global Aggregate USD

Barclays Global Aggregate Hedged

2012 *


Portfolio attribution

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

2008 2009 2010 2011 2012

Duration Country Allocation Curve Allocation Credit Allocation Emerging Debt Currency TradingCurrency

Credit Allocation

Emerging Debt

Curve Allocation Duration Country Allocation

Trading

Performance attribution expressed as an absolute percentage of the contribution gross performance. Gross portfolio attribution of Amundi Funds Bond Global Aggregate for 2010 to 2012. Gross portfolio attribution of the strategy for 2008 and 2009 (for information purposes only). Source: Amundi. Data as at October 2012. Information given for indicative purposes only. Past performance is not necessarily a guide to future performance. Investors may not get back the amount they originally invest The sub-fund does not offer any capital or performance guarantee.

A “full cycle” product: sources of excess return are dynamic over time


Amundi Funds Bond Global Aggregate is different from the competition

Good complement to competitors in the global fixed income space

50/50 portfolio may potentially provide noticeably lower risk and impressive

returns1

Recent performance is driven by credit & developed FX strategies

Bond market stress still provides a buying opportunity

Complementary management style and drivers of returns

Top-Down Multi-dimensional management provides different sources of alpha

Bottom-Up Strong internal research lets portfolio construction contribute to returns

Benchmark Agnostic

Agnostic approach emphasizes total return, tapping value wherever it exists while providing diversification

Ris

k B

ud

ge

ting

1 Source: Amundi. End of September 2012. Information given for indicative purposes only. Past performance is not necessarily a guide to future performance. Investors may not get back the amount they originally invest Past market data are no reliable indicators for current or future data. The sub-fund does not offer any capital or performance guarantee


Alpha creation

Three normally low-correlated asset classes / three angles

Source: Amundi. Information given for indicative purposes only, may change without prior notice.

Directional Relative Value Tactical management

Bonds

Currencies

Credit

Duration

$ exposure

Credit exposure

Country allocation

Curve allocation

G4 allocation

Intra-bloc allocation

Macro sector allocation

Strategic views

Short-term trading

Bond selection

EM currency allocation

Short-term trading

Market/industry

Bond selection

EMD relative value

Emerging

Emerging Exposure

Emerging exposure

External / Local debt

Region, country, curve

Corporate

Bond selection

Short-term trading

A clear decision-making process

Core views

Qualitative views expressed

as a score, on a 9-point scale

from very negative (-4)

to very positive (+4)

Made upon any type of

argument (macro-eco,

valuation, flows,…)

Meetings (with clients) as

market conditions dictate

Multiple investment horizons

Views only on strategies where

we have a strong conviction

Formalised in a single

document

Source: Amundi. Views as at 07/11/12. See also disclaimer page. Amundi Funds Bond Global Aggregate - Citywire - November 2012 - page 14


Strategic orientation 2012-2013

Global growth remains anaemic and heterogeneous. The Eurozone and the UK are

flirting with recession while the Chinese and Japanese economies have surprised to the

downside. The US, to the contrary, are continuing to deliver positive macro surprises.

G-4 central banks have taken monetary accommodation to a new level. As a result,

financial and macroeconomic tail risks have been capped.

Overall, macro visibility has improved as risks from the negative confidence effect of the

Eurozone crisis have eased and reduced tail risk has led to a reduction in uncertainty.

Strong flows continue to support emerging and credit the “hunt” for yield in a low rate

environment.

As macro calls are disturbed by political decisions and unorthodox Central Bank

policies, investment horizon has shortened.

High uncertainty and low visibility where active management & portfolio construction are key.

Source: Amundi. Information given for indicative purposes only. Past market data are no reliable indicators for current or future data.


Amundi Funds Bond Global Aggregate today

Equilibrate risk allocation

Attractive yield

Limited specific risk

Geographic Allocation Asset Allocation Rating breakdown

Yield 4.21%

Duration 3.8

Average Rating BBB+

Number of securities 190

Source: Amundi. Data as of end-October 2012. Past performance is not necessarily a guide to future performance. Investors may not get back the amount they originally invest Strategies given for indicative purposes only, may change without prior notice.


Breakdown by seniority

Source: Amundi. Portfolio data as of end-October 2012. Past performance is not necessarily a guide to future performance. Investors may not get back the amount they originally invest Strategies given for indicative purposes only, may change without prior notice within the limits stated in the prospectus . 1 The sub-fund does not offer any capital nor performance guarantee

Overweight: – Short-term credit vs. long-term credit to capture attractive spreads

– US and European core countries of issuers with recent reinforcement of peripherals

Attractive valuation’s on prime quality MBS

Active use of credit derivatives to protect the

sub-fund vs. adverse scenarios1

Benefit from attractive yields & flows to support EM1

Issuer selection supported by recommendations from a large and experienced credit research team

Breakdown by sector

A constructive view on credit…


Preference: – USD vs. developed markets currencies

– Emerging markets currencies vs. developed markets currencies

Use of options in order to increase convexity

Tail risk hedge

Breakdown by currency

…And Combined With Active Currency Management

Source: Amundi. September 2012. Strategies given for indicative purposes only, may change without prior notice within the limits stated in the prospectus .


Clearly defined guidelines in more detail

Management reference

indicator

Barclays Global Aggregate Hedged

Tracking-Error (ex-ante) Maximum 4.5% p.a. (with 66% confidence level)1

Interest rate risk Active modified duration management within [0;8] bracket1

Currency risk Hedged reference indicator but active currency management

Investment universe Minimum 2/3 of assets to be invested in :

- OECD government bonds

- OECD corporate bonds

- Investment grade ABS/MBS

Minimum 80% of assets invested in investment grade

instruments

Typically, 100+ cash securities in the portfolio1, active use of

CDS

Source: Amundi, September 2012. 1 Internal guidelines given for indicative purposes only. May change without prior notice. Please refer to Amundi Funds prospectus for further details about the investment and management style of the sub-fund. 2. Morningstar rating data source: 30 October 2012., Morningstar, Inc. All Rights Reserved. Universe: Global Bond. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The rating concerns the IU class.

Morningstar Rating TM- Overall

2


Disclaimer

The issuer of this document is Amundi Hong Kong Limited. 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. Any dissemination, reproduction, copy, modification or translation in whole or in part, with respect to any information provided herein is forbidden. This document is for professional investors only and not for retail investors. Some of the fund(s) mentioned in this document are not authorized by Securities and Futures Commission in Hong Kong. Consequently, shares or units of such funds are not available to the general public in Hong Kong and must not be distributed in Hong Kong by way of public offer, public advertisement or in any similar manner. This document has not been reviewed by any regulatory authority in Hong Kong and no regulatory authority in Hong Kong takes responsibility for the financial soundness of the funds or for the accuracy of any statement made or opinion expressed in this document. Investors are advised to exercise caution in relation to the offer. Any investor who is in doubt about the contents of the document is strongly recommended to seek independent professional advice. 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. 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 which are targeted by the fund(s) 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. The offering document(s) should be read for further details including the risk factors. The fund(s) may use financial derivatives instruments as part of the investment strategy and invest in securities of emerging markets or smaller companies, or fixed-income securities. This involves significant risks and is usually more sensitive to price movements. The volatility of fund prices may be relatively increased. Issuers of fixed-income securities may default on its obligation and the fund(s) will not recover its investment. Additional risk factors are described in the offering document(s). Investors are advised to be aware of any new risks that may have emerged in the prevailing market circumstances before subscribing the fund(s).


This material is solely for the attention of institutional, professional, qualified or sophisticated investors and distributors. It is not to be distributed to the general public, private

customers or retail investors in any jurisdiction whatsoever nor to “US Persons”.

Moreover, any such investor should be, in the European Union, a “Professional” investor as defined in Directive 2004/39/EC dated 21 April 2004 on markets in financial

instruments (“MIFID”) or as the case may be in each local regulations and, as far as the offering in Switzerland is concerned, a “Qualified Investor” within the meaning of the

provisions of the Swiss Collective Investment Schemes Ordinance of 23 June 2006 (CISA), the Swiss Collective Investment Schemes Ordinance of 22 November 2006 (CISO)

and the FINMA’s Circular 08/8 on Public Offering within the meaning of the legislation on Collective Investment Schemes of 20 November 2008. In no event may this material be

distributed in the European Union to non “Professional” investors as defined in the MIFID or in each local regulation, or in Switzerland to investors who do not comply with the

definition of “qualified investors” as defined in the applicable legislation and regulation.

Disclaimer This document contains information about Amundi Funds Bond Global Aggregate (the “Sub-Fund”), a sub-fund of Amundi Funds (the “SICAV”), an undertaking for collective

investment in transferable securities existing under Part I of the Luxembourg law of 17 December 2010, organised as a société d’investissement à capital variable and registered

with the Luxembourg Trade and Companies Register under number B68.806. The SICAV has its registered office at 5, allée Scheffer, L-2520 Luxembourg.

Amundi Funds has been authorised for public sale by the Commission de Surveillance du Secteur Financier in Luxembourg.

Subscriptions in the Sub-Funds will only be accepted on the basis of the SICAV’s latest prospectus and/or the Key Investor Information Document (KIID) of the sub-fund, its latest

annual and semi-annual reports and its articles of incorporation that may be obtained, free of charge, at the registered office of the SICAV or respectively at that of the

representative agent duly authorized and agreed by the relevant authority of each relevant concerned jurisdiction.

Consideration should be given to whether the risks attached to an investment in the Sub-Funds are suitable for prospective investors who should ensure that they fully

understand the contents of this document. A professional advisor should be consulted to determine whether an investment in the Sub-Funds is suitable.

The value of, and any income from, an investment in the Sub-Funds can decrease as well as increase. The Sub-Funds have no guaranteed performance. Further, past

performance is not a guarantee or a reliable indicator for current or future performance and returns. The performance data do not take account of the commissions and costs

incurred on the issue and redemption of units.

This document does not constitute an offer to buy nor a solicitation to sell in any country where it might be considered as unlawful, nor does it constitute public advertising or

investment advice.

The information contained in this document is deemed accurate as at November 2012.

amundi funds bond global aggregate citywire asia hk_final

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