About the Strategy
Amundi US Agency MBS Strategy seeks to add value through security selection and sector rotation within the agency mortgage sector, while limiting duration risk relative to the mortgage benchmark. We believe the return from security and sector selection is more attractive than the return from betting on interest rates.
Benchmark
Bloomberg US MBS Index
Inception Date
July 1, 1998
Vehicles
Separate Account
The Strategy is appropriate for investors seeking the safety and liquidity of US Treasury bonds, but with higher yields.
Overview
- Seeks to add value through security selection and sector rotation within the high credit quality mortgage sector, while limiting duration risk relative to the benchmark
- Goal is to assume and manage spread (or basis) risk, prepayment risk, and the risk of changes in implied volatility
- Composition is focused primarily on agency mortgage-backed securities
- Average credit quality is agency
- Duration-matched to the Bloomberg US MBS Index
Why Amundi US?
A strong fixed income investment culture focused on sound, fundamental research drives the management of the Amundi US Agency MBS Strategy. Key features of the Strategy include:
- Evaluate investments in all sectors of the mortgage market and use proprietary research to seek value in mortgage cash flows
- Look to add value through security selection and sector rotation within the high credit quality mortgage sector which has historically outperformed Intermediate Treasuries with lower realized volatility
- We believe the firm is skilled at earning excess compensation for spread, prepayment, and volatility risks, while mitigating relative duration risk
Portfolio Management
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Tyler Patla Senior Vice President |
Rob Aufdenspring, CFA Senior Vice President |
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This information is exclusively intended for “Professional” investors within the meaning Directive 2014/65/EU of the European Parliament and the Council of 15 Many 2014 on Markets in Financial Instruments (as amended) (MIFID II). It is not intended for the general public or for non-professional individual investors within the meaning of all local regulations, or for “US Persons”, as defined in the Securities and Exchange Commission’s “Regulation S” under the 1933 U.S. Securities Act. This non-contractual information does not under any circumstances constitute an offer to buy, a solicitation to sell, or advice to invest in financial instruments of Amundi or one of its affiliates (“Amundi”). Investing involves risks. The performance of the strategies is not guaranteed. Past performance does not predict future results. Investors may lose all or part of the capital originally invested. There is no guarantee that ESG considerations will enhance a strategy’s performance. The decision of investors to invest in the promoted strategies should take into account all characteristics of objectives of the strategies. All investors should seek professional advice prior to any investment decision, in order to determine the risks associated with the investment and its suitability. Amundi assumes no liability, either direct or indirect, resulting from the use of any of the information contained in this document, and shall not under any circumstances be held liable for any decisions taken on the basis of this information. This information may not be copied, reproduced, modified, translated or distributed, without the prior written approval of Amundi. This information is provided to you based on sources that Amundi considers to be reliable at the date of publication, and it may be modified at any time without prior notice.