Amundi HK - Guaranteed Fund 1 | Amundi HK Retail

Amundi HK - Guaranteed Fund 1

Finding ways to navigate market uncertainty in pursuit of wealth preservation?

The Amundi HK - Guaranteed Fund 1 provides downside protection paired with opportunities for growth.

Guaranteed Fund 1 Visual

1. The Fund has a guarantee feature. The guarantor is Amundi Finance. The investment objective of the Fund is to provide the First Payout and the Second Payout. The Fund seeks to achieve its investment objective by investing primarily in a portfolio of USD denominated investment grade debt securities and/or cash and cash equivalents, while using financial derivative instruments (“FDIs”) for both hedging and investment purposes, over a fixed investment period of approximately 24 calendar months from the close of the Initial Offer Period up to the Fund’s Maturity Date.

2. Investing in this Fund may expose investors to risks associated with the operations of the Fund, in particular, credit / counterparty risk associated with the Guarantor, monthly dealing frequency and debt securities. It may also involve substantial realization risk, early termination risk, limited subscription risk, concentration risk, connected parties risk and currency risk. The use of financial derivative instruments for hedging and investment purposes may subject to additional risks, including credit risk of the issuers, liquidity, counterparty, valuation, volatility and over-the-counter transaction risks. Investors should note that subsequent to the launch of the Fund, it will use FDIs including entering into an OTC option contract to enable it to achieve its investment objective, and such underlying position is not intended to be adjusted for the purpose of preserving the First Payout, the Second Payout and the Guaranteed Value.

3. Redemptions before the Maturity Date are fully exposed to fluctuations in the value of the Fund’s assets. The redemption price may be lower than the Guaranteed Value before the Maturity Date. In the event that the Guarantor defaults, the benefit of the guarantee may be lost, and investors may not get back the amount of money they invested.

4. Investors should not make investment decisions solely based on this marketing material. Investors should read the offering document for further details of the guarantee.

What makes our guaranteed fund 

a compelling investment option for investors now?

Reason 1 – A solution that can cope with rising volatility amid heightened policy uncertainty

  • Spiking volatility: Policy uncertainty fuels worse swings than during 2018 trade war
  • Tariff drag: Threatens consumer spending and growth even in absence of recession
  • Remedy for market uncertainties: Offers guarantees at a pre-determined level (subject to satisfaction of certain pre-determined conditions)

 

Source: Amundi Investment Institute, Bloomberg. Policy uncertainty indexes are from Baker, Bloom & Davis. Daily data as of 5 May 2025. 

Reason 1 – A solution that can cope with rising volatility amid heightened policy uncertainty

draft reason 1

Reason 2 - A solution that can offer downside protection during market turbulence

- Downside risks remain: Traditional asset classes are still subject to downside risks

- Decision Paralysis: Economic uncertainties create a challenging environment for risk-taking

- No complete solution: No single asset class can simultaneously offer potential returns and guarantee downside protection
 

Source: Morningstar as at end May 2025. Each peer group is based on Morningstar categories within the universe of Hong Kong SFC-authorized funds. SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance. It does not mean the product is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. 

Reason 2 - A solution that can offer downside protection during market turbulence

Traditional Assets 1 Year Maximum Drawdown

Against this backdrop, Amundi HK - Guaranteed Fund 1

A solution that provides investors a guaranteed payout (the First Payout)1 and a Guaranteed Value2, regardless of market conditions while keeping the opportunity to capture the potential upside in the US stock market.

What does the Fund guarantee1,2 in 2 years? 

 

The Fund offers guarantee features1,2. When investors remain invested in the Fund until the Maturity Date, they are entitled to receive a guaranteed payout (the First Payout)1 and the Guaranteed Value2 at maturity, regardless of market conditions while still maintaining the opportunity to capture the potential upside in the US stock market.

 

Guaranteed Payout Timeline Illustration

What are the expected returns of the Fund under different scenarios?

 

Assuming an investor invests $100 at an Initial Offer Price (assuming Initial Offer Price is at $100) and remains invested until the Maturity Date. Here is the scenario analysis for the guaranteed payouts at maturity:

6 months after inception (First Payout Date)

1. First Payout1: USD 100 × 1.5% = USD 1.5
 

On Maturity Date

2. Second Payout2: the higher of (a) and (b) 

 (a) the Guaranteed Value2
     = Initial Offer Price × (1 + Average Index Performance5 × Participation Rate6)

     (b) the NAV^ of the Fund on the Maturity Date

 
Reference Benchmark3: S&P 500® Daily Risk Control 5% USD Excess Return Index)
 
Average Index Performance
= (Average Index) / (Initial Index) - 1
 
Average Index Performance5 is capped at 15%
 
Participation Rate6: 80%

Best Scenario

 

Best Scenario

 

NAV at Maturity^: $112

Average Index Performance5: 30% (capped at 15%)

Potential Total Return = 1.5 + 100 × (1 + 15%5 × 80%6) = $113.5 (which is up to 13.5%)

Better Scenario

 

Better Scenario

 

NAV at Maturity^: $108

Average Index Performance5: 10%

Potential Total Return = 1.5 + 100 × (1 + 10%5 × 80%6) = $109.5 (which is up to 9.5%)

Base Scenario

 

Base Scenario

 

NAV at Maturity^: $100

Average Index Performance5: 0%

Potential Total Return = 1.5 + 100 × (1 + 0%5 × 80%6) = $101.5 (which is up to 1.5%)

Worst Scenario

 

Worst Scenario

 

NAV at Maturity^: $85

Average Index Performance5: -20%

Potential Total Return = 1.5 + 100 × (1 + 0%5 × 80%6) = $101.5 (which is up to 1.5%)

Fund Features

 

Guaranteed Value

Guaranteed Value2

100% of Initial Offer Price per unit + a gain (Index performance payout4, if any) after all deductions

 

payout

A guaranteed payout1 of minimum 1.5% after 6 months of investment 

Dollar Upside

 

Capture potential upside of the US stock market

1. Investors are entitled to First Payout if they remain invested on First Payout Date. Dividend can be paid out of capital. 

2. Guaranteed value means an amount equal to 100% of the initial offer price per unit plus a gain (if any) minus New Payment Obligations (if any). All deductions includes subscription fees and New Payment Obligations of the Fund if any. In the event of a change in laws and regulations resulting in the creation of New Payment Obligations for the Fund and in particular a direct or indirect financial charge of a fiscal or other nature, the First Payout or the Guaranteed Value (as the case may be) may be reduced by the effect of the New Payment Obligations. Investors are entitled to First Payout and Second Payout if they remain invested on First Payout Date and Maturity Date respectively.

3. The Reference Index of the Fund is the S&P 500® Daily Risk Control 5% USD Excess Return Index. This index is intended to provide a performance benchmark for the US equity market, while seeking greater stability and a reduction in the overall risk level of S&P 500® Total Return Index. The objective of this reference index is to maintain a target volatility of 5%. The Fund does not invest directly in the Reference index. The Fund’s net asset value return may not be consistent with the index performance. 

4. The Index Performance Payout is linked to the performance of the Reference Index3 minus New Payment Obligation (if any). The Index Performance Payout will be calculated as follows: Participation Rate6 × Average Index Performance5 (the Average Index Performance is capped at 15%) × Initial Offer Price

5. Average Index = Average of the closing price of the Reference Index as at the Monthly Fixing Dates during the Sub-Fund’s investment period of approximately 24 calendar months. If the Average Index Performance calculated in accordance with the formula above is negative, the Index Performance Payout will be zero. 

6. Participation Rate: the rate applied to the FDIs for calculating the Index Performance Payout under the FDIs. Participation Rate is estimated at 80% and is subject to the market condition at the launch date, the actual participation rate may be different from the indicative rate. 

^ Before guarantee provision.

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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. This document has not been reviewed by the Securities and Futures Commission in Hong Kong (the “SFC”). 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.  Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment.  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 document is not intended for citizens or residents of the United States of America or to any «U.S. Person» , as this term is defined in SEC Regulation S under the U.S. Securities Act of 1933 and in the Prospectus of the Fund. © 2025 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.