1. The fund invests in a broad range of income-producing securities from around the world.
2. Investing in this fund may expose investors to exchange/currency risk, equity risk, equity-linked instruments risk, volatility risk, emerging markets risk and European sovereign-debt crisis risk. It may also involve risk relating to dynamic asset allocation strategy, risks associated with debt securities, subordinated bonds and perpetual bonds, as well as risk associated with regulatory/exchange requirements/policies of certain markets/regions.
3. The fund may use financial derivative instruments (FDI) for hedging, for efficient portfolio management and as a way to gain exposure (long or short) to various assets, markets or other investment opportunities. FDI exposure may involve additional risks such as credit/counterparty risk, volatility and liquidity risk, valuation risk and over-the-counter transaction risk. The fund may be leveraged and suffer losses from its FDI usage.
4. For distribution class, the fund may at its discretion determine to pay dividends out of income or capital or effectively out of capital of the fund. Payment of dividends out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the fund’s capital or payment of dividends effectively out of the fund’s capital (as the case may be) may result in an immediate reduction of the net asset value per share of the fund.
5. The value of the fund can be volatile and could go down substantially. Investors may suffer losses.
6. Investors should not make investment decisions solely based on this marketing material.

Global markets remain highly uncertain. Elevated geopolitical risks, volatile interest-rate expectations and persistent macroeconomic headwinds are prompting investors to look for resilient, adaptable strategies. In today’s environment of heightened volatility and unpredictable market swings, relying on a single asset class is no longer sufficient in navigating changing market conditions. For investors seeking to navigate market turbulence while both preserving and growing wealth over the long term, flexibility and active management have become essential.

Rate-Cut Expectations and Elevated Valuations: A Double Squeeze

Investors are currently caught between two opposing forces. On one hand, the appeal of traditional fixed income has weakened as markets increasingly price in interest rate cuts. On the other, valuations across many asset classes remain stretched, particularly in high-risk areas such as mega-cap technology stocks, where upside may be limited and volatility remains elevated.

Moreover, with market performance heavily concentrated in a narrow set of assets, portfolios are more vulnerable to sudden shocks such as persistent inflation or slowdowns in consumer spending. In this environment, one of the biggest challenges for investors is how to generate stable returns while balancing risk and reward.

Strategy 1: Diversification Through Multi-Asset Allocation

In volatile markets, diversification is an essential principle that cannot be overlooked. True multi-asset allocation should not be confined to simple equity-bond portfolios, but should encompass a broad range of geographies, asset types, and characteristics. 

By allocating capital across equities, a broad range of bonds and alternative investments, investors can reduce the impact of any single market swing on their portfolio. This approach is designed to take advantage of the low correlation between asset classes, providing a cushion during periods of uncertainty and helping to reduce concentration risk.

Strategy 2: Prioritising Quality Assets

As economic growth slows, markets often shift their focus toward resilience and reliability. High-quality assets typically provide stronger downside protection and more stable cash flows. In equities, this means looking for companies with solid fundamentals and attractive valuations. In fixed income, the emphasis should be on bonds with higher credit quality, such as investment-grade securities.

A flexible strategy built around quality can help preserve portfolio value even when market sentiment turns cautious, while also positioning investors to benefit when the economy begins to recover.

Strategy 3: Adopting an Income-Driven Approach

In an environment where capital appreciation potential is slowing, income becomes a key driver of total return. By actively allocating to instruments that provide stable dividend or coupon income, investors can create a defensive layer within their portfolio.

Beyond traditional equity dividends and bond coupons, incorporating alternative income sources such as Equity Linked Notes (ELNs) or securitized assets into a portfolio can further enhance its overall income potential.

A Professional Solution for Multiple Needs

For many investors, achieving diversification, selecting high-quality assets and generating consistent income at the same time can be too challenging and time-consuming, as it requires constant monitoring of market conditions and a high level of investment expertise.

In contrast, professionally managed multi-asset funds offer a more efficient and cost-effective solution. Fund managers actively adjust asset allocations dynamically across market cycles and use hedging instruments to manage downside risk, helping investors navigate complex and volatile markets while progressing toward their investment goals.

Take Amundi Funds Income Opportunities as an example. As it is not constrained by a benchmark, the fund can actively capture investment opportunities around the world. Its investment universe is exceptionally broad, spanning U.S. and developed-market equities, Agency Mortgage-Backed Securities (Agency MBS), and even emerging market assets.

The fund's management team has demonstrated a strong ability to adapt to changing conditions. In 2025, for example, it reduced exposure to high-yield bonds as credit spreads tightened, and instead increased allocations to Agency MBS, where spreads were more compelling, as well as to ELNs, which can offer attractive income alongside a capped growth potential. This exemplifies a truly dynamic approach to asset allocation.

Income remains at the core of the fund’s strategy, which combines both traditional and alternative sources of income. In addition to high-quality dividend-paying stocks and bonds, the fund strategically leverages ELNs as a supplementary income source. In particular, when credit spreads are tighter, ELNs can offer a stronger income profile than traditional bonds.

As of the first quarter of 2026, the fund’s portfolio yield reached 7.2%, outperforming investment-grade bonds (5.2%) and global equities (1.7%), providing investors with sustained and competitive cash flow support.
 

Amundi Funds Income Opportunities: Yield Comparison vs. the Market

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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.

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 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.

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.