Amundi, a subsidiary jointly created by Crédit Agricole and Société Générale, has expanded its index range with the launch of a new “smart beta” index fund.

European asset manager Amundi has launched its first multi “smart beta” open-ended index fund.

The Amundi Index Equity Global Multi Smart Allocation Scientific Beta targets improved risk-adjusted performance compared to a cap-weighted index and will be available in the UK, France and other key European markets.

One common definition of a “smart beta” fund is one that tracks a style index or uses a mechanical investing strategy to obtain returns associated with a particular strategy without the cost of active management.

The new fund provides exposure to the Scientific Beta Developed Multi-Beta Multi-Strategy ERC strategy index, which comprises a selection of around 2000 large and mid-cap stocks in developed countries. 

This index tracks the performance of four weighted sub-indices which assess volatility, valuation, size and momentum when selecting stocks, alongside five smart beta diversification strategies.

“Multi-factor smart beta strategies represent a very important area of growth. To meet increasing client demand, Amundi has therefore developed a wide range of smart beta solutions with the aim of remaining at the forefront of innovation,” said Amundi's global head of ETF, indexing and smart beta, Valerie Baudson.

The fund will be available through different share classes with minimum subscription levels and ongoing charges ranging from 0.15 per cent to 0.50 per cent.

Amundi's “smart beta” exchange-traded fund, which launched in June 2014, now manages almost €400 million ($449 million) in assets. As of the end of March, the firm managed over €950 billion in assets worldwide.