Life above zero: investors’ journey at a time of rising rates
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June 2022
For professional investors only
Life above zero: investors’ journey at a time
​​​​​​​of rising rates
While we navigate a subdued economic backdrop, inflation concerns (core inflation) are mounting, along with geopolitical tensions, a tightening trajectory for central banks, and continuing Covid restrictions in China, investors are facing more and more challenges. Against this backdrop, we remain neutral on risk assets but fine-tuned our exposure around opportunities presented by CB policy overtures, the evolving global economy, and the strength of commodities in an inflationary environment. In particular:

In Equities, uncertainty remains high. From a regional perspective, we continue to favour the US vs Europe while we stay neutral on EM. We also believe that value call remains a medium term trend.

In Fixed Income, we have further reduced our short duration stance – in Europe in particular, but also in the US. In credit, we continue to focus on quality and we are more cautious on higher risk segments in Europe.

Gold remains a portfolio diversifier in the current context.
Monthly convictions
Source: Amundi. The table represents a cross-asset assessment on a 3- to 6-month horizon based on views expressed at the most recent global investment committee. The outlook, changes in outlook and opinions on the asset class assessment reflect the expected direction (+/-) and the strength of the conviction (+/++/+++). This assessment is subject to change. UST = US Treasury, DM = Developed markets, EM/GEM = Emerging markets, FX = Foreign exchange, FI = Fixed income, IG = Investment grade, HY = High yield, CBs = central banks, BTP = Italian government bonds, EMBI = EM Bonds Index.
Favouring US equities...
In the current market environment, our main scenario already pencils in regional divergences. The US economy is still favoured by strong fundamentals - labour markets and consumer balance sheets remain strong - that should position it to withstand the inflation storm. Here, we believe a soft landing is possible, notwithstanding both the energy-shock and the aggressive monetary policy tightening. We keep our preference for companies with high operational efficiencies, those that return cash to shareholders through buybacks and dividends, and can maintain earnings growth.

0.09% OGC*

0.18% OGC*


​​​​​​​0.15% OGC*
... and European value
The move from growth to value, particularly high quality & less cyclical, should be supported by high valuation premiums of growth, a mild upward repricing of core yields and rising inflation. In details, in Europe the market is currently discounting 100bp of rate hikes by the end of the year, supporting the rise in European government bond yields over recent weeks. In this environment, value stocks should benefit from further increases in rates whilst growth companies with relatively high valuations, such as those in the technology sector, tend to underperform when interest rates are rising as their expected future cash flows fall. 

0.23% OGC*

0.40% OGC*
Focus on EUR Inflation...
Inflation and rate hike expectations are in the spotlight during this phase of turmoil. In the Eurozone, the spike in energy costs is the main factor driving inflation to its highest level since the euro’s inception. In the meantime, food prices are expected to rise further, while broad-based pressures on the prices of other goods and services continue to gradually mount. Inflationary pressures should therefore remain high in the Eurozone. Whilst the performance of traditional inflation-linked bonds are likely to be further affected by their exposure to duration, this risk is neutralised through an exposure to inflation expectation strategies.

... and EUR FRNs
Whilst we observe a fragmented inflation trend across the Eurozone, the ECB seems ready to fight inflation by starting rising its rates in July. This first hike could be the first of three estimated hikes this year. In this context, Floating-Rate Notes offer an alternative to investors which pays a spread above current short-term rates and enjoy the benefit of future rate increases.

Constructive on US IG corporate bonds
Given the current market environment, investors should consider playing the relative resilience of the US notably by selecting US IG (short maturity) over EUR IG corporate bonds. This asset class offers opportunities given better fundamentals, still- strong consumption environment in the US and our expectations of a limited impact on corporate earnings. However, the main debate today in corporate credit is whether the risks related to earnings, higher rates and inflation are appropriately reflected in prices.

0.14% OGC*

0.14% OGC*
Safe-haven demand remains strong for gold
Precious metals: Gold
While we observed some outflows in the market in the recent period, investors are still showing faith in the yellow metal. Historically, gold has been used to provide protection against potential tail risks during times of market stress as it has tended to rise during stock market falls. As such, it may be able to help preserve capital during times of geopolitical stress. In the near term, gold may be an interesting diversifier when the upward pressure on rates fades, as well as considering it might be in demand from central banks as a reserve for value.
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*Ongoing charges - annual, all taxes included. For Amundi ETF funds, the ongoing charges correspond to the Total Expense Ratio. The ongoing charges represent the charges taken from the fund over a year. When the fund has not closed its accounts for the first time, the ongoing charges are estimated. It compares the annual total management and operating costs (all taxes included) charged to a fund against the value of that fund’s assets. Transaction cost and commissions may occur when trading ETFs.
**The TER is a measure that compares the annual total management and operating costs (all taxes included) charged to a ETC against the value of that ETC’s assets. Transaction cost and commissions may occur when trading ETCs.

It is important for potential investors to evaluate the risks described below and in the fund’s Key Investor Information Document (“KIID”) and prospectus available on our websites or (as the case may be).
CAPITAL AT RISK - ETFs are tracking instruments. Their risk profile is similar to a direct investment in the underlying index. Investors’ capital is fully at risk and investors may not get back the amount originally invested.
UNDERLYING RISK - The underlying index of an ETF may be complex and volatile. For example, ETFs exposed to Emerging Markets carry a greater risk of potential loss than investment in Developed Markets as they are exposed to a wide range of unpredictable Emerging Market risks.
REPLICATION RISK - The fund’s objectives might not be reached due to unexpected events on the underlying markets which will impact the index calculation and the efficient fund replication.
COUNTERPARTY RISK - Investors are exposed to risks resulting from the use of an OTC swap (over-the-counter) or securities lending with the respective counterparty(-ies). Counterparty(-ies) are credit institution(s) whose name(s) can be found on the fund’s website or In line with the UCITS guidelines, the exposure to the counterparty cannot exceed 10% of the total assets of the fund.] 
CURRENCY RISK – An ETF may be exposed to currency risk if the ETF is denominated in a currency different to that of the underlying index securities it is tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns.
LIQUIDITY RISK – There is a risk associated with the markets to which the ETF is exposed. The price and the value of investments are linked to the liquidity risk of the underlying index components. Investments can go up or down. In addition, on the secondary market liquidity is provided by registered market makers on the respective stock exchange where the ETF is listed. On exchange, liquidity may be limited as a result of a suspension in the underlying market represented by the underlying index tracked by the ETF; a failure in the systems of one of the relevant stock exchanges, or other market-maker systems; or an abnormal trading situation or event.
VOLATILITY RISK – The ETF is exposed to changes in the volatility patterns of the underlying index relevant markets. The ETF value can change rapidly and unpredictably, and potentially move in a large magnitude, up or down.
CONCENTRATION RISK – Thematic ETFs select stocks or bonds for their portfolio from the original benchmark index. Where selection rules are extensive, it can lead to a more concentrated portfolio where risk is spread over fewer stocks than the original benchmark.

This material is solely for the attention of professional and eligible counterparties, as defined in Directive MIF 2014/65/UE of the European Parliament acting solely and exclusively on their own account. It is not directed at retail clients. In Switzerland, it is solely for the attention of qualified investors within the meaning of Article 10 paragraph 3 a), b), c) and d) of the Federal Act on Collective Investment Scheme of June 23, 2006.
This information is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities or services in the United States or in any of its territories or possessions subject to its jurisdiction to or for the benefit of any U.S. Person (as defined in the prospectus of the Funds or in the legal mentions section on,  and The Funds have not been registered in the United States under the Investment Company Act of 1940 and units/shares of the Funds are not registered in the United States under the Securities Act of 1933.
This material reflects the views and opinions of the individual authors at this date and in no way the official position or advices of any kind of these authors or of Amundi Asset Management nor Lyxor International Asset Management and thus does not engage the responsibility of Amundi Asset Management nor Lyxor International Asset Management nor of any of its officers or employees. This research is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It is explicitly stated that this document has not been prepared by reference to the regulatory requirements that seek to promote independent financial analysis. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Neither Amundi Asset Management nor Lyxor International Asset Management accept liability, whether direct or indirect, that may result from using any information contained in this document or from any decision taken the basis of the information contained in this document. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. Our salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients and principal trading desks that reflect opinions that are contrary to the opinions expressed in this research. Our asset management area, principal trading desks and investing businesses may make investment decisions that are inconsistent with the recommendations or views expressed in this research.
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The Funds are respectively Amundi UCITS ETFs (“Amundi ETF”) and Lyxor UCITS ETFs (“Lyxor ETF”). Amundi ETF designates the ETF business of Amundi and includes the funds under both Amundi ETF and Lyxor ETF denomination.
The Funds are French or Luxembourg open ended mutual investment funds respectively approved by the French Autorité des Marchés Financiers or by the Luxembourg Commission de Surveillance du Secteur Financier, and authorized for marketing of their units or shares in various European countries (the Marketing Countries) pursuant to the article 93 of the 2009/65/EC Directive. The Funds can be sub-funds of the following umbrella structures:
For Amundi ETF: Amundi Index Solutions, Luxembourg SICAV, RCS B206810, located 5, allée Scheffer, L-2520, managed by Amundi Luxembourg S.A.
For Lyxor ETF: 
- Multi Units France, French SICAV, RCS 441 298 163, located 91-93, boulevard Pasteur, 75015 Paris, France, managed by Lyxor International Asset Management
- Multi Units Luxembourg, RCS B115129 and Lyxor Index Fund, RCS B117500, both Luxembourg SICAV located 28-32, place de la Gare, L-1616 Luxembourg, and managed by Lyxor International Asset Management
- Lyxor SICAV, Luxembourg SICAV, RCS B140772, located 5, Allée Scheffer, L-2520 Luxembourg, managed by Lyxor Funds Solutions
Before any subscriptions, the potential investor must read the offering documents (KIID and prospectus) of the Funds. The prospectus in French for French UCITS ETFs and in English for Luxembourg UCITS ETFs, and the KIID in the local languages of the Marketing Countries are available free of charge on, and or upon request to They are also available from the headquarters of the Amundi Index Solutions SICAV, or the headquarters of Lyxor International Asset Management (as the management company of Multi Units Luxembourg, Multi Units France and Lyxor Index Fund) or of Lyxor Funds Solutions (as the management company of Lyxor SICAV).
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Please note that the management company may de-notify arrangements made for marketing as regards units/shares of the Fund in a Member State of the EU in respect of which it has made a notification.
A summary of information about investors’ rights and collective redress mechanisms can be found in English on the regulatory page at with respect to Amundi ETFs, and, at with respect to Lyxor ETFs. 
This document was not reviewed, stamped or approved by any financial authority.
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This material is based on sources that Amundi for Amundi ETF, and Lyxor and Lyxor UK for Lyxor ETF consider to be reliable at the time of publication. Data, opinions and analysis may be changed without notice. Amundi, Lyxor and Lyxor UK accept no liability whatsoever, whether direct or indirect, that may arise from the use of information contained in this material. Amundi or Lyxor can in no way be held responsible for any decision or investment made on the basis of information contained in this material.
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Indices and the related trademarks used in this document are the intellectual property of index sponsors and/or its licensors. The indices are used under license from index sponsors. The Funds based on the indices are in no way sponsored, endorsed, sold or promoted by index sponsors and/or its licensors and neither index sponsors nor its licensors shall have any liability with respect thereto. The indices referred to herein (the “Index”) are neither sponsored, approved or sold by Amundi nor Lyxor nor Lyxor Funds Solutions. Neither Amundi nor Lyxor nor Lyxor Funds Solutions shall assume any responsibility in this respect. 
AMUNDI PHYSICAL GOLD ETC (the “ETC”) is a series of debt securities governed by Irish Law and issued by Amundi Physical Metals plc, a dedicated Irish vehicle (the “Issuer”). The Base Prospectus, and supplement to the Base Prospectus, of the ETC has been approved by the Central Bank of Ireland (the “Central Bank”), as competent authority under the Prospectus Directive. Pursuant to the Directive Prospective Regulation, the ETC is described in a Key Information Document (KID), final terms and Base Prospectus (hereafter the Legal Documentation). The ETC KID must be made available to potential subscribers prior to subscription. The Legal Documentation can be obtained from Amundi on request. The distribution of this document and the offering or sale of the ETC Securities in certain jurisdictions may be restricted by law. For a description of certain restrictions on the distribution of this document, please refer to the Base Prospectus. The investors are exposed to the creditworthiness of the Issuer.
In EEA Member States, the content of this document is approved by Amundi and Lyxor for use with Professional Clients (as defined in EU Directive 2004/39/EC) only and shall not be distributed to the public. 
Information reputed exact as of the date mentioned above.
Reproduction prohibited without the written consent of Amundi. 

The Funds are foreign undertakings for collective investment registered with the CNMV. Luxembourg Funds were approved for public distribution in Luxembourg by the Commission de Surveillance du Secteur Financier of Luxembourg. French Funds were approved by the French Autorité des Marchés Financiers.
For Amundi ETF: Amundi ETFs approved by the Commission de Surveillance du Secteur Financier are numbered: Amundi Index Solutions (1495). Amundi Index Solutions is a Luxembourg SICAV, RCS B206810, located 5, allée Scheffer, L-2520 Luxembourg. 
For Lyxor ETF: Lyxor ETFs approved by the French Autorité des Marchés Financiers are numbered:
- Multi Units France (319). Multi Units France is a French SICAV, RCS 441 298 163, located 91-93, boulevard Pasteur, 75015 Paris, France. Lyxor ETFs approved by the Commission de Surveillance du Secteur Financier are numbered: 
- Multi Units Luxembourg (920), RCS B115129 and Lyxor Index Fund (760), RCS B117500, both located 28-32, place de la Gare, L-1616 Luxembourg, and
- Lyxor SICAV, RCS B140772, located 5, Allée Scheffer, L-2520 Luxembourg.
Information and documents are available on, and upon request to, and also free of charge from:
- Lyxor International Asset Management, 91-93 boulevard Pasteur, 75015 Paris, France – société par actions simplifiée – registered under number 419 223 375 with RCS of Paris (management company of Multi Units France, Multi Units Luxembourg and Lyxor Index), or
- Lyxor Funds Solutions, 5, Allée Scheffer, L-2520 Luxembourg – registered under number B139351 with the RCS of Luxembourg (management company of Lyxor SICAV)
Any investment in the Funds must be made through a registered Spanish distributor. Amundi Iberia SGIIC, SAU, is the main distributor of the Funds in Spain, registered with number 31 in the CNMV's SGIIC registry, with address at Pº de la Castellana 1, Madrid 28046, Spain. A list of all Spanish distributors may be obtained from the CNMV at Units/shares may only be acquired on the basis of the most recent prospectus, key investor information document and further current documentation, which may be obtained from the CNMV.
The legal documentation of the Funds is also available on the web page and

Amundi Suisse SA is distributing in Switzerland and from Switzerland the collective investment schemes managed by Amundi Asset Management and /or Amundi Luxembourg. In this respect, Amundi Suisse SA informs investors that it collects, from Amundi Asset Management and/ or Amundi Luxembourg, a compensation under article 34 al. 2bis in the Ordinance on collective investment schemes (Ordonnance sur les placements collectifs de capitaux, OPCC). This compensation can constitute a part of the management fees stated in the prospectus. Additional information regarding the existence, nature and calculation method for the compensation received by Amundi Suisse SA within the frame of its distribution activity in Switzerland or from Switzerland may be provided upon written request to Amundi Suisse, SA 6-8 rue de Candolle, 1205 Genève, Suisse.
This document is for qualified investors (as defined in Swiss Federal Act on Collective Investment Schemes of 23 June 2006 as amended or supplemented) use only and shall not be offered to the public. 
For Amundi ETF: The Representative and Paying Agent for Funds registered for public offering in Switzerland is for Amundi Index Solutions SICAV: Representative - CACEIS (Switzerland) SA and Paying Agent, CACEIS Bank, Nyon Branch both at 35 Route de Signy, Case postale 2259, CH-1260 Nyon. Free copies of the prospectus, key investor information documents, annual and semi-annual reports, management regulations and other information are available at the representative’s address shown above. 
For Lyxor ETF: The Representative and the Paying Agent of the Fund(s) in Switzerland is Société Générale, Paris, Zurich Branch, Talacker 50, CH-8001 Zurich. The prospectus or offering memorandum, the key investor information documents, the management regulation, the articles of association and/or any other constitutional documents as well as the annual and semi-annual financial reports may be obtained free of charge from the Representative in Switzerland. The prospectus, the key investor information documents, the articles of association and/or the annual reports may be obtained free of charge from the Representative in Switzerland.

The Funds have been passported into Sweden pursuant to the Swedish Securities Funds Act (as amended) (Sw. lag (2004:46) om värdepappersfonder), implementing the UCITS IV Directive and may accordingly be distributed to Swedish investors. The Key Investor Information Document (“KIID”) (in Swedish) and the prospectuses for the funds, as well as the annual and semi-annual reports are also available from the Swedish paying agent free of charge. 
For Amundi ETF and Lyxor ETF: The name and details of the Swedish paying agent are Skandinaviska Enskilda Banken AB (publ) through its entity Transaction Banking, SEB Merchant Banking, with its principal offices at Kungsträdgårdsgatan 8, SE-106 40 Stockholm, Sweden.

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