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Fitch Affirms CPR Croissance Reactive 'Strong' Fund Quality Rating
January 29, 2014 / 3:31 PM / 4 years ago

Fitch Affirms CPR Croissance Reactive 'Strong' Fund Quality Rating

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: CPR Croissance Reactive here PARIS/LONDON, January 29 (Fitch) Fitch Ratings has affirmed CPR Croissance Reactive’s ‘Strong’ Fund Quality Rating. The fund is a flexible multi-asset global fund, managed by CPR Asset Management (CPR AM), a wholly owned subsidiary of Amundi Asset Management. KEY RATING DRIVERS Fund Presentation Launched in 1997, CPR Croissance Reactive is a French-domiciled “Fonds Commun de Placement� with EUR272m of assets as of end-December 2013. The fund aims to outperform a composite benchmark of 50% MSCI World Euro and 50% JPM GBI World Hedged with a 15% maximum volatility. Equity exposure can vary between 20% and 80%. The fund is mainly invested in ETFs (Exchange Traded Funds). Investment Process The investment process is well defined and executed, based on a balanced model-driven and discretionary approach. The asset allocation is model-driven, with a tactical judgmental overlay. The proprietary multi-scenario model has been in place since 1998. It uses discretionary scenario-based asset performance forecasts agreed at committees and selected correlations matrices as inputs. The model’s output is a portfolio, optimised for given risk budget and constraints. Resources The fund benefits from solid resources. The fund’s core portfolio management team of four has average experience of 14 years. The quantitative research team has seven analysts, including one fully dedicated to the asset allocation model and the head of the team who originally developed the model. In Fitch’s view, the model-driven process and consensual decision making process results in a limited key person dependency. Other support functions include a team of four CPR AM investment risk managers and Amundi shared resources for operations and trading. The fund also benefits from Amundi’s IT platform. Track Record The fund has achieved the best Lipper Leader score over three, five and ten years, in the “Mixed Asset/ EUR Balanced Global� Lipper category. Its performance is first quintile over three and five years, achieved with volatility levels that are consistent with the category’s average. The fund typically outperforms in bear or volatile markets but may not fully capture market upside in rapid trend reversals. The fund’s superior track record allows it to achieve a ’Strong’ Fund Quality Rating. Asset Manager Created in 1989, CPR AM focuses on quantitative strategies. CPR AM is now a wholly owned subsidiary of Amundi AM. At end-September 2013 CPR AM had EUR25.8bn assets under management (AUM), including EUR5bn in multi-assets. RATING SENSITIVITIES The rating may be sensitive to material changes in the investment or operational processes, or resources dedicated to the fund. A material adverse deviation from Fitch's guidelines for any key rating driver could result in a downgrade of the rating. For example, this may be manifested in significant structural deterioration in the fund's performance resulting from a model error or inadequacy, as measured by drawdown or underperformance relative to benchmark and peers. Fitch sees limited potential for an upgrade at this stage due to the fund’s already high rating. Fitch's Fund Quality Ratings combine Fitch's experience in qualitative fund analysis with rankings and performance data from Lipper, a Thomson Reuters company. Fitch's Fund Quality Ratings offer an independent, forward-looking assessment of a fund's key performance and risk attributes and consistency of longer-term returns, relative to peer group or benchmarks. The ratings focus on the fund manager's investment process, key fund performance drivers, risk management, and the quality of the fund's operational infrastructure. For more information, see www.fundmanagement.fitchratings.com To receive forthcoming Fund Quality Rating research, opt in here Contacts: Primary Analyst Manuel Arrive, CFA Senior Director +33 1 44 29 91 77 Fitch France S.A.S. 60 rue de Monceau Paris 75008 Secondary Analyst Charlotte Quiniou, CFA Director +33 1 44 29 92 81 Committee Chairman Aymeric Poizot Managing Director +33 1 44 29 92 76 Media Relations: Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.huntly@fitchratings.com. Additional information is available at www.fitchratings.com. Applicable criteria, 'Fund Quality Ratings Criteria', dated 19 September 2011, are available at www.fitchratings.com. Applicable Criteria and Related Research: Fund Quality Ratings Criteria: Assessing Funds’ Investment Processes and Operational Attributes here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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