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Amundi Sviluppo Italia: Everything about the Amundi PIR

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Amundi Sviluppo Italia: Everything about the Amundi PIR

Co-founder of Affari Miei

February 22, 2024

Amundi Sviluppo Italia (ISIN: IT0005245243) is an actively managed mutual investment fund, controlled by Amundi SGR, a company belonging to Gruppo Crédit Agricole.

Below I analyze them characteristics main features of the fund: the investment policy, costs, risks and performance, the subscription methods and the policy for using the proceeds.

This is information that you can verify yourself by consulting the KID and the Information Prospectus, which can be downloaded from the SGR website.

If you don’t understand financial language you may have difficulty reading. No problem, I intend to provide you with all the means to correctly interpret the documents.

Let’s start.

This article talks about:

Two words about Amundi

Amundi Funds belongs to the group Amundi Asset Management which deals with investments and fund management in Italy and throughout Europe. It in turn is part of the Crédit Agricole Group.

The SGR which administers and manages the investments (i.e. the sub-funds) is Amundi Luxembourg SA, with registered office in Luxembourg. Italian investors can invest in the sub-funds keeping in mind that the fund is subject to the tax legislation of the country in which it is domiciled

Fund characteristics

Amundi Sviluppo Italia is a equity fund focused on Italian SMEs. The main objective of the investment is to achieve significant capital growth.

30% of the portfolio is also invested in securities of large cap companies. The combination of securities with different capitalization allows you to optimize profits and dilute the risks associated with individual segments of the market.

The fund cannot be invested in an overall amount exceeding 10% of the assets:

in financial instruments of the same issuer or stipulated with the same counterparty or with another company belonging to the same group as the issuer or counterparty; in deposits – including certificates of deposit – as well as in current accounts.

Benchmark

Il benchmark reference is made up of 70% of the FTSE Italia Mid Cap index, and 30% of FTSE MIB.

Lo management style it is naturally active, so the fund has the task of outperforming the Benchmark, and to achieve this it can invest in financial instruments not present in the index or present in different proportions.

It’s a fund PIR

I fondi PIR are reserved for savers interested in building a Individual savings plan long-termi.e. a form of investment incentivized by taxation because it supports the real Italian economy.

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The benefit consists of income tax relief from capital and other income; but to benefit from the exemption, at least 5 years must be spent in the fund.

Risk profile

Since this is a completely equity investment, among other things based mainly on small and medium-sized Italian companies, the risk/return level – which is evaluated on a scale from 1 to 7 – is equal to level 6, high risk.

This means that it is a product that tends to be high volatilitysuitable only for investors capable of withstanding even significant variations in the value of the shares held.

This happens because the main purpose of this product is the growth of Italian companies and, obviously, the performance of the fund could be affected by the economic dynamics affecting Italy.

Subscription and exit methods

The bottom is type “open”it is possible to subscribe to shares at any time through the distributors.

Participation can take place by paying the desired amount in a single payment (PIC mode), of a minimum of €50. Or by paying periodic amounts, i.e. by opening a Capital accumulation plan (PAC mode).

This second method is only possible by subscribing to the Class A shares. The number of periodic payments is chosen by the subscriber, provided that it is between a minimum of 9 and a maximum of 240 payments. The starting amount of each installment is €50.

When you decide to exit the fund, you must send a request to the SGR (on any working day). The Company will, as soon as possible, refund the value of your shares.

Use of proceeds

The revenue distribution policy is ad accumulationthis means that the profits accrued each year are not distributed but reinvested in the fund itself.

Personally, this is the method I prefer, but there are some who prefer the periodic distribution of proceeds.

Costs

Obviously staying in the fund is not without costs. The expenses borne by investors, direct and indirect, are very important because reduce performance total investment.

The expense statement is the best comparison tool between two or more funds, because it allows you to choose the most profitable – with the same portfolio and risk profile.

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The fund presents 2 commission schemesdifferent for Class A and Class B shares. Let’s see them both.

Class A Units:

Entry charge, maximum 2.00% of the invested capital; Refund fee not present; Ongoing charges equal to 1.91%, percentage taken annually from the fund; Annual performance fees, corresponding to 15% of the positive difference between the performance achieved by the fund and that achieved by the benchmark.

Class B Units:

No subscription fee; Refund fee, maximum 2.1% of the refunded value; Ongoing charges equal to 2.18%, percentage taken annually from the fund; Unforeseen performance expenses.

The commission profile of Class B units does not penalize the initial capital, which is therefore fully invested. It also does not apply performance costs, so the excess return is not reduced due to expenses.

On the other hand, the ongoing charges are decidedly higher than the commission profile of Class A shares. And at the time of disinvestment, you get back what was not paid out initially. Obviously the SGR doesn’t give anything away.

Affari Miei’s opinions on Amundi Sviluppo Italia

Let’s get to the final question: is it worth subscribing to this fund or not?

Since it is an equity fund, it should be subscribed only in the presence of a high risk appetite and, above all, it requires adequate portfolio diversification.

You cannot concentrate all your investment activity on the Italian stock market. It doesn’t suit you. This fund it’s not diverse enough on a geographical level and not even on a sectoral level.

It means tying the future of your money to the fate of Italian SMEs, without a good distribution of risk across multiple markets and activities.

After that, the convenience of investing in a similar basket is relative. I can only tell you that if you don’t have a sufficiently long time horizon in front of you, it’s not worth subscribing to the fund.

Personally I prefer target global equity basketswhich I find much more solid, balanced and less risky.

This is what I would do, but actually I have never invested in mutual funds actively managed, for a whole series of reasons.

I don’t like actively managed funds

I find that the category has many flaws:

Management costs too high. On the market there are passive funds (ETFs) that cost as little as 0.2% per year and have no subscription fees;

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Lack of transparency. I prefer to invest in passively managed funds because they simply follow a reference index without discretionary strategies, so I am sure of the direction of my investment;
Banking conflict of interest. The vast majority of actively managed funds are sold by companies belonging to banking groups. In practice, distributors and managers are the same thing, there is an obvious conflict of interest;
Poor liquidity. Not all actively managed funds are listed on regulated markets. This means that to sell you must necessarily go through the bank while if you invest in ETFs you can sell at any time.

As you can see, actively managed mutual funds have a series of critical points which, if not properly understood, then tend to penalize the investor, in one way or another.

In case you are not clear about the cost part, I advise you to download our free report in which we explain how the costs of the funds are costing Italians billions of euros without the latter realizing the real importance of the topic.

Before investing, define your goals

If you think you don’t understand anything about investments and you are interested in this product because they offered it to you at the bank, I advise you to think about it seriously, because you are buying something that you may not have understood, with all the consequences of the case.

Are you sure the product fits well into your strategy?

If you have doubts, you need to take a step back and redefine yours goals. And if you don’t have an investment strategy at all, it’s even worse: you lack the foundations and this could undermine your path, not only with this product but in general.

Conclusions

In this article we analyzed the fund Amundi Sviluppo Italia. Now you have the elements to make a responsible choice.

Read also guide for new investors, specific for all stages of life:

Good continuation up My business.

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