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Amundi to entice HK investors with income funds

The firm launched three funds in the SAR that provide a monthly dividend distribution.

Three Luxembourg-domiciled fixed income products from Amundi have been launched today, according to a statement from the firm.

These products are the Emerging Markets Bond Fund, the Pioneer US Bond Fund and the Global High Yield Bond Fund. The firm received approval from the Securities and Futures Commission (SFC) last month to distribute the funds to retail investors, according to SFC records.

The products aim to provide a monthly dividend distribution and have been developed in response to the growing demand from investors for non-derivatives and income-generating products, Xiaofeng Zhong, Amundi’s CEO for North Asia, said in the statement. However, the firm did disclose the targeted yield of the three funds.

“Investment solutions with steady sources of income are becoming more relevant to investors amid the uncertain market environment,” adds Vincent Mortier, deputy chief investment officer at Amundi.

With the launch of the three products, Amundi now offers nine SFC-authorised fixed income funds in Hong Kong. In total, the firm has 35 SFC-authorised funds, including fixed income, equity and mixed-asset offerings.

Amundi managed around €1.592trn ($1.873trn) in assets as of end-June, according to the statement, noting that 47% of the assets is in fixed income strategies.

Several other firms have also been pushing income-generating funds, as the search for income has intensified after central banks globally brought interest rates down further as they sought to backstop markets during the Covid-19 pandemic.

In Hong Kong, managers that are expected to launch income-generating funds include Hang Seng Investment Management, Alliance BernsteinManulife Investment Management, Goldman Sachs Asset Management and GF International Investment Management, according to SFC records.

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