• Home
  • Products
  • Consider Low- or Uncorrelated Allocations

Dynamic markets, agile thinking

 

Consider Low- or Uncorrelated† Allocations

In an uncertain market environment, investors may want to recalibrate their allocations for growth while seeking to protect portfolios from downside. Beyond a traditional core portfolio, asset allocations may include low- or uncorrelated assets such as interval funds, catastrophe bonds, and other unique sources of return. A highly diversified, cross-asset strategy may provide enhanced exposure and effective risk management.

Extending beyond traditional fixed income markets

To strengthen their portfolios, investors may wish to seek exposures with little to no correlation with traditional markets. Jon Duensing, head of fixed income and portfolio manager at Amundi US, describes some of these opportunities and explains how investors can potentially benefit. 

Untitled Document

Pioneer CAT Bond Fund featured in Barron’s

See the Barron’s article titled, "Catastrophe Bonds Are Anything But for Investors " (Stone, 2024) for the background on catastrophe bonds and a highlight on Pioneer CAT Bond Fund and potential diversification‡ benefits.

   

Clicking the above link will bring you to a site that is not maintained by or affiliated with Amundi US or any of its subsidiaries. The administrator of this site, not Amundi US, is responsible for the accuracy of the information you find there.

‡ Diversification does not assure a profit or protect against loss. 

How is climate change affecting the outlook for insurance-linked securities?

The annual repricing of reinsurance means ILS can remain poised to compensate investors for the risks involved, even with climate change risks on the horizon. Learn more about how these securities can help broaden investor portfolios. 

Read our full paper,  Insurance-Linked Securities and Climate Change

Including catastrophe bonds within a broader asset allocation can potentially have powerful diversification benefits while also offering total return potential.

Read our full paper,  Opportunities in Catastrophe Bonds.

   

Attractive return potential with lower volatility 

Over 10-year period ending 9/30/24, CAT Bonds offered higher return with lower realized risk than many other asset classes

Alternatives can reduce portfolio risk and deliver competitive returns when compared with traditional assets.

Source: Morningstar as of 9/30/2024. Data is based on past performance, which does not guarantee future results. Data is not meant to represent the performance of any Amundi US portfolio. Commodities represented by Bloomberg Commodity Total Return Index. CAT bonds represented by the Swiss Re Global CAT Bond Total Return Index, which tracks the aggregate performance of all USD, EUR and JPY denominated CAT bonds, capturing all ratings, perils and triggers. US Stocks represented by the S&P 500 Index, a commonly used measure of the US Stock Market. US Aggregate Bonds represented by the Bloomberg US Aggregate Bond Index. High Yield Corporate Bonds represented by the ICE BofA US High Yield Index. Indices are unmanaged and their returns assume reinvestment of dividends and do not reflect any fees or expenses. It is not possible to invest directly in an index.

    

Opportunities to Explore

Amundi US offer a unique suite of alternative assets which can further diversify‡ a traditional portfolio:

Pioneer CAT Bond Fund

An effective diversifier, primarily invested in catastrophe bonds, linked to weather-related events generally uncorrelated with financial markets. 

Learn More

Pioneer ILS Interval Fund

Unique exposure to insurance-linked securities, highly diversified across reinsurance peril, geographic region and security type.

Learn More

   You may also be interested in

LUC-You may be interested in

Dynamic Markets, Agile Thinking

Global Opportunities Shift

Bonds take Center Stage

Momentum for Quality Accelerates

Please visit our Mutual Fund page to find our full list of mutual funds.

†Correlation - The degree to which assets or asset class prices have moved in relation to one another. Correlation ranges from -1 (always moving in opposite directions) through 0 (absolutely independent) to 1 (always moving together).  ‡Diversification does not assure a profit or protect against loss. 

Definitions: Catastrophe bond: Debt instruments designed to raise money for insurance companies in the event of a natural disaster by paying out only if specific conditions, such as earthquakes or tornados, occur. Interval fund: A closed-end mutual fund that doesn't trade on an exchange and only allows investors to redeem shares periodically in limited quantities.

Untitled Document

Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your financial professional or Amundi US for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it from our  literature section.

Securities offered through Amundi Distributor US, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer mutual funds, Member   SIPC.   

Not FDIC insured | May lose value | No bank guarantee Amundi Asset Management US, Inc.  Form CRS         Amundi Distributor US, Inc.  Form CRS 

EXP-2025-09-30-ADID-388790-1Y-T