the right recipe on european equities

The Right Recipe on European Equities

Conservative Equity strategies

 Alexandre Drabowicz, CAIA

 Head of Investment Specialists - Equities

 March 2016 – Investment Summit 2016

 Bruxelles

 This material is solely for the attention of "professional” investors

(see more details and definitions at the back).

Amundi Funds Equity Europe Conservative

TABLE OF CONTENTS

1. Investors dilemma with equities

2. Our conservative approach

3. Our track record

2

“I love equities”

Amundi Funds Equity Europe Conservative Source: https://app.hedgeye.com/insights , 20/10/2015

Given for Illustrative purposes only

3

In a world of ultra low interest rates, equities remain the ultimate source

of performance in global portfolios

https://app.hedgeye.com/insights


“I hate equities”

Amundi Funds Equity Europe Conservative Source: https://app.hedgeye.com/insights , 21/01/2016


4

Yet, when volatility resurfaces, drawdowns and risks become central in

managing portfolios




TABLE OF CONTENTS



3. Our track record

5

More pain, more gains: less pain, more gains!


The Sub-Fund does not offer any performance or capital guarantee and presents a risk

of capital loss.

Amundi Funds Equity Europe Minimum Variance became Amundi Funds Equity Europe

Conservative the 27th July 2015.

Source: Amundi AM, Factsheet AMUNDI FUNDS EQUITY EUROPE CONSERVATIVE - IE , as of 31/12/2015,

over the period of 12/2010 op to 12/2015 Morningstar source data as at 09/2015.

1. Fund volatility vs. benchmark volatility from April 2009 to January 2016 weekly data. 2. Fund gross

performance in 2011: +1.6%, MSCI Europe NR -8.1% 3. Gross cumulative return from April 2009 to January

2016. Past performances do not guarantee future results, nor are they reliable indicators of future returns

Less volatile1: 22% risk

reduction

More resilient2: positive year

+20% in 2015 when equities

gain only 8.2%

Strong performance3: 79%

cumulative last 5 years with

41% outperformance

Amundi Funds Equity Europe Conservative: a core investment to

European equity potential at lower risk

6

©[2015] Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is

proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and

(3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content

providers are responsible for any damages or losses arising from any use of this information.

Circa 80 investments

PORTFOLIO OPTIMISATION

200 potentials

HI-LO SCREENING

How? A focus on quality investing and risk reduction

Amundi Funds Equity Europe Conservative  The Sub-Fund does not offer any performance or capital guarantee and presents a risk

of capital loss.

 Given for illustrative purposes only, may change without prior notice.

European Equity Market

7

‘Hi-Lo’ screening for quality selection

Amundi Funds Equity Europe Conservative  The Sub-Fund does not offer any performance or capital guarantee and presents a risk

of capital loss. Given for illustrative purposes only, may change without prior notice.

 1. Key numbers on Amundi Funds Equity Europe Conservative as of 29/01/2016.

8

Identify companies in the Stoxx 600 that may benefit from market growth whilst mitigating

losses in declining markets and which demonstrate:

High operating efficiency Increasing gross margins

Growing asset turnover ratio

Low or no debt Low long term debt to equity ratio

High current ratio

No new shares issued in the last year

High profitability Positive return on assets

Positive operating cash flow

Increasing Return on Assets

Cash flow from operations greater than ROA

 KEY PTF NUMBERS1

# of stocks: 89

Active share: 70%

Dividend Yield: 3.9%

Quality selection: steady wins the race!

Amundi Funds Equity Europe Conservative  Source: Amundi, Bloomberg, data as of 28/10/2015.

 Past performance do not guarantee future results, nor are they reliable indicators of

future returns. All trademarks and logos used for illustrative purposes in this document

are the property of their respective owners.

9

We selected Sky But not Altice

Group has steadily delivered strong

results over the last quarters

Revenue growth at +6%

Operating profit +10%

Huge leverage at 8x following

acquisition of Cable TV for $18bn

$8.6b of new debt & $1.8bn of new

shares issued

Earnings revised sharply lower

Altice: boom & bust!

Sky: steady but +26% YTD

Portfolio diversification to ensure resilience

 Lower risk & lower drawdowns: our key strengths

A robust portfolio construction ensures a good level of diversification

The result is less risk and more resilience in the past 5 years of trackrecord

Amundi Funds Equity Europe Conservative Source: Amundi, gross performance as of 31/12/2015. Past performance do not

guarantee future results, nor are they reliable indicators of future returns

1. Risk reduction calculated as: (Fund volatility/MSCI Europe volatility) -1

Year & Event Europe Conservative

Max Drawdown

MSCI Europe

Max Drawdown

Risk reduction1

2010 – Greece worries -8.5% -13.7% -26%

2011 - Sovereign debt crisis -14.2% -24.3% -24%

2012 – Renewed debt worries -5.2% -12.8% -32%

2013 - FED tapering worries -9.1% -11.0% -12%

2014 - Greece referendum -9.6% -11.1% -11%

2015 - China growth scare -13.9% -17.6% -5%

10

What ? The fund invests in blue chip companies

Amundi Funds Equity Europe Conservative  Source: Amundi data as of 29/01/2016

 All trademarks and logos used for illustrative purposes in this document are the property

of their respective owners

Top 10 positions Europe

Conservative

MSCI

Europe

Over/Under

-weight

RECKITT BENCKISER GROUP PLC 2.5% 0.7% 1.7%

BT GROUP PLC 2.4% 0.7% 1.7%

WPP PLC 2.3% 0.4% 1.9%

UNILEVER NV 2.3% 0.9% 1.4%

MUNICH REINSURANCE COMPANY 2.3% 0.4% 1.9%

HENKEL AG AND CO KGAA 2.3% 0.4% 1.9%

ROCHE HOLDING AG 2.2% 2.4% -0.2%

BRITISH AMERICAN TOBACCO PLC 2.2% 1.3% 0.9%

SAP SE 2.2% 1.0% 1.2%

NOVO NORDISK A/S 2.1% 1.4% 0.7%

TOTAL 22.7% 9.7% 13.1%

Number of holdings 89

Dividend yield 3.90%

11

Active Share 66%

Amundi Funds Equity Europe Conservative  Source: Amundi data as of 29/01/2016

 Given for Illustrative purposes only

Underweight Financials & Energy,

overweight IT & consumer

Country exposure results from selection

and diversification benefits

Where? A conservative positioning, UW financials/energy

12

0% 5% 10% 15% 20% 25%

Energy

Utilities

Materials

Financials

Telecom Services

IT

Cons. discretionary

Health Care

Industrials

Cons. staples

Europe Conservative MSCI Europe

0% 10% 20% 30% 40%

PORTUGAL

AUSTRIA

NORWAY

BELGIUM

IRELAND

FINLAND

ITALY

SPAIN

DENMARK

SWEDEN

SWITZERLAND

NETHERLANDS

GERMANY

FRANCE

UK

Europe Conservative MSCI Europe

What ? Style exposure

Amundi Funds Equity Europe Conservative  Source: FactSet, Amundi, data as of 30/01/2016.

 Given for Illustrative purposes only

13

Bias toward Mid caps, Low Risk, High Momentum, High Quality, High Growth


TABLE OF CONTENTS



3. Our track record

14

A core & long term exposure to European equities

Amundi Funds Equity Europe Conservative  Source: Amundi, Pams, 30/10/2015, gross performance. Past performance do not guarantee future results,

 nor are they reliable indicators of future returns.3 & 5yr performance are cumulative, since inception is annualised. Given for Illustrative purposes only.

©[2015] Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or

distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising

from any use of this information.

15

 A powerful trackrecord that speaks for itself

Gross performance YTD 1 year 3 years 5 years Since Inception

AFE Europe Conservative 19.6% 25.5% 61.3% 93.2% 15.7%

MSCI Europe NR 11.3% 13.2% 47.7% 59.4% 12.9%

Excess return 8.4% 12.3% 13.6% 33.8% 2.8%

-20

-10

0

10

20

30

40

50

80

130

180

230

280

330

Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15

Cumulative Excess Return Gross performance Benchmark

15,3%

1,6%

16,9% 18,0%

11,5%

19,6%

11,1%

-8,1%

17,3%

19,8%

6,8%

11,3%

2010 2011 2012 2013 2014 YTD

Amundi Fds Eq Europe Conservative - IE (C) MSCI Europe

Top distribution ranking

Amundi Funds Equity Europe Conservative  Source: Morningstar category: Europe Large-Cap Blend Equity, data as of 31/10/2015, net performance.

Past performance do not guarantee future results, nor are they reliable indicators of future returns. Given for Illustrative purposes

only.©[2015] Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its

content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither

Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

16

 94% of competitors beaten over 5 years

Peer Group - 5 year for Amundi Funds

Equity Europe Conservative IE C

Europe Large-Cap Blend Equity Universe – in

EUR – net of fees

Amundi Fds Eq Europe

Conservative

MSCI Europe

Average Universe

0

5

10

15

8 10 12 14 16 18

Performance

% beaten

competitors # funds

YTD 95% 612

1 year 95% 609

3 years 86% 555

5 years 94% 507

First decile YTD, 1YR & 5YR

A very attractive risk/return profile:

lower risk for higher return

MORE RISK

MO

RE

PE

RF

OR

MA

NC

E

Annualized

returns in %

Annualized

volatility in %

Top institutional ranking

Amundi Funds Equity Europe Conservative Source: Mercer. Mercer Performance Analysis. All rates of return are before tax and before

management fees in EUR. Rates of return are annualized for periods exceeding one year.

Past investment performance is not an adequate test of comparative performance, nor a

reliable indicator of the expected absolute level of returns in the future.


17

 Top performer, lowest volatility, high Sharpe Ratio, lowest drawdown over 5yr

Conclusion : the right vehicle for European equities

Amundi Funds Equity Europe Conservative  1. Source: Amundi AM data as of 29/01/2016 2. The Sub-Fund does not offer any performance or

capital guarantee and presents a risk of capital loss

 ©[2015] Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content

providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor

its content providers are responsible for any damages or losses arising from any use of this information.

A core exposure to European equity potential at lower risk

A strong track record with significant outperformance and proven ability to offer resilience during market downturn2

A core investment for clients looking for regular returns with the opportunity for growth

Conservative investments in established profitable European companies

Proprietary investment process

€445M AUM and Six year track record 1

18

Amundi Funds Equity Europe Conservative:

Main characteristics

*A detailed summary of the performance fees can be found in the prospectus..

**Or, in the case of, at an earlier time as fixed by the distributor.

Not all share classes, and, if applicable categories of Shares are listed for sale in all countries. Investors may

contact Amundi Luxembourgd S.A. for more information.


Investment Manager Amundi

Custodian CACEIS Bank Luxembourg S.A

Reference currency of the sub-fund EUR

All Investors Institutional Investors Distributors

share class AE-C AE-D IE-C IE-D SE-C

Reference currency of the class EUR EUR EUR EUR EUR

ISIN Code LU0755949848 LU0755949921 LU0755949418 LU0755949509 LU0755950002

share category Accumulation / Distribution Accumulation

Bloomberg Ticker AMMVAEC LX CMMVIEC LX AMMVSEC LX

Minimum initial subscription None Equivalent in EUR of USD 500,000 None

Frequency of NAV calculation Daily

Cut off for dealing times Luxembourg Dealing days before 2pm (Luxemburg time)*

Maximum subscription fee 4.50% 2.50% 3.00%

Maximum annual management fee 1.30% 0.50% 1.70%

Maximum annual administration fee 0.35% 0.25% 0.35%

Performance fee** 20% of the cumulative performance above the performance objective

Maximum conversion fee 1.00%

Maximum redemption fee None

Countries of registration Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland,

United Kingdom

19

Disclaimer


 This material is provided for information purposes only and does not constitute a recommendation, a solicitation, an offer, an advice or an invitation to purchase or sell any fund, SICAV, sub-fund, (“the Funds”) described herein and should in no case be interpreted as such.

 This material, which is not a contract, is based on sources that Amundi considers to be reliable. Data, opinions and estimates may be changed without notice.

 Amundi accepts no liability whatsoever, whether direct or indirect, that may arise from the use of information contained in this material. Amundi can in no way be held responsible for any decision or investment made on the basis of information contained in this material.

 The information contained in this document is disclosed to you on a confidential basis and shall not be copied, reproduced, modified, translated or distributed without the prior written approval of Amundi, to any third person or entity in any country or jurisdiction which would subject Amundi or any of “the Funds”, to any registration requirements within these jurisdictions or where it might be considered as unlawful. Accordingly, this material is for distribution solely in jurisdictions where permitted and to persons who may receive it without breaching applicable legal or regulatory requirements.

 Not all funds, or sub-funds will be necessarily registered or authorized in all jurisdictions or be available to all investors.

 Investment involves risk. Past performance and simulations based on these, do not guarantee future results, nor are they reliable indicators of future performance. The value of an investment in the Funds, in any security or financial product may fluctuate according to market conditions and cause the value of an investment to go up or down. As a result, you may lose, as the case may be, the amount originally invested. All investors should seek the advice of their legal and/or tax counsel or their financial advisor prior to any investment decision in order to determine its suitability. It is your responsibility to read the legal documents in force in particular the current French prospectus for each fund, as approved by the AMF, and each investment should be made on the basis of such prospectus, a copy of which can be obtained upon request free of charge at the registered office of the management company.

 This document contains information about Amundi Funds Equity Europe Conservative (the “Sub-Fund”), sub-fund of Amundi Funds (the “SICAV”), an undertaking for collective investment in transferable securities existing under Part I of the Luxembourg law of 17 December 2010, organised as a société d’investissement à capital variable and registered with the Luxembourg Trade and Companies Register under number B68.806. The SICAV has its registered office at 5, allée Scheffer, L-2520 Luxembourg.

 Amundi Funds has been authorised for public sale by the Commission de Surveillance du Secteur Financier in Luxembourg.

 Not all sub-funds of the SICAV (the "Sub-Funds") will necessarily be registered or authorized for sale in all jurisdictions or be available to all investors. Subscriptions in the Sub-Funds will only be accepted on the basis of the SICAV’s latest prospectus and/or the Key Investor Information Document (KIID) of the Sub-Fund, its latest annual and semi-annual reports and its articles of incorporation that may be obtained, free of charge, at the registered office of the SICAV or respectively at that of the representative agent duly authorized and agreed by the relevant authority of each relevant concerned jurisdiction.

 Consideration should be given to whether the risks attached to an investment in the Sub-Funds are suitable for prospective investors who should ensure that they fully understand the contents of this document. A professional advisor should be consulted to determine whether an investment in the Sub-Funds is suitable.

 The value of, and any income from, an investment in the Sub-Funds can decrease as well as increase. The Sub- Funds have no guaranteed performance. Further, past performance is not a guarantee or a reliable indicator for current or future performance and returns. The performance data do not take account of the commissions and costs incurred on the issue and redemption of units.

 This document does not constitute an offer to buy nor a solicitation to sell in any country where it might be considered as unlawful, nor does it constitute public advertising or investment advice.

 The information contained in this document is deemed accurate as at January 2016.

Amundi Asset Management, French joint stock company (“Société Anonyme”) with a registered capital of € 596 262 615 and approved by the French Securities Regulator (Autorité des Marchés Financiers - AMF) under number GP 04000036 as a portfolio management company - 90 boulevard Pasteur -75015 Paris - France - 437 574 452 RCS Paris. - www.amundi.com – www.amundi-funds.com

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the right recipe on european equities

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