French asset manager Amundi has opted to roll its France-domiciled European high yield bond fund into a much larger Ucits version of the strategy, Citywire Global has learned.
The change, which came into effect at the end of 2014, is designed to limit crossover between French-domiciled and Ucits-compliant funds.
It means the €56 million Amundi Oblig Haut Rendement will be absorbed into the €910 million Luxemboug-domiciled Amundi Fds Bond Euro High Yield fund, which has been managed since January 2011 by Marina Cohen.
In a letter to shareholders, Amundi said: ‘It is in the interest of both the unitholders of the merging fund and the shareholders of the receiving sub-fund to rationalize the Amundi French and Luxembourg investment funds range having a similar investment objective and policy, in order to generate greater management efficiency and economies of scale.’
The Amundi Oblig Haut Rendement P returned 43.7% in euros terms over the three years to the end of December 2014. This is while its benchmark, the BofA Merrill Lynch Euro High Yield TR rose 52.7% over the same timeframe.
Meanwhile, the Amundi Fds Bond Euro High Yield returned 42.3% over the same period, while its benchmark, the BofA Merrill Lynch European Currency HY TR EUR Hdg, rose 53.9%.