Amundi reports €3.7bn outflows in Q2 2017

French asset management giant Amundi has recorded €28.8bn of net new money in the first half of 2017, the company has announced.

The manager’s inflows were mostly driven by the retail segment on which some €22.9bn were boarded across distribution channels. In particular, third-party distributors have accounted for €9.9bn of Amundi’s net inflows in H1 2017 against €3.7bn of inflows boarded by the manager during the first half of 2016.

Amundi added that the international networks (+€4.7bn, mostly achieved through the Italian networks) saw significant inflows from the UniCredit networks (+€3.5bn).

However the level of inflows reported for the first half of the year by Amundi hides disparities between the net new money poured into the firms’ strategies in Q1 and in Q2 2017.

After the manager faced €15.3bn and €17.1bn of inflows from retail and institutional investors respectively, it has suffered during the second quarter of the year.

On the retail side, Amundi reported net inflows of €7.5bn in Q2 2017 (against +€8.3bn in Q2 2016), supported by a momentum among third-party distributors and the international networks.

The manager noted that joint ventures saw moderate outflows over the quarter due to a negative result in China, partially offset by positive flows in India and South Korea. French retail networks have also faced outflows of – €0.3bn during the second quarter of 2017.

The institutional segment remains where Amundi has struggled the most in Q2 2017, having faced significant outflows of – €11.2bn between April and June 2017. Institutional investors have withdrawn assets from the firm’s treasury products.

A total of €5.9bn of net inflows were seen in H1 2017 on the institutional side against €6.7bn of net new money recorded in H1 2016.

As of 30 June 2017, Amundi, which faced an overall positive market effect (+€9.5bn) during the first half of the year, had assets under management of €1.12trn (€1.34trn when adding Pioneer Investments’ assets).

International assets under management have increased by 25% year-on-year, representing 29% of total assets under management and 44% of total assets excluding Group insurers.

Last 3 July 2017, Amundi completed the acquisition of Pioneer Investments from UniCredit for €3.5bn.

The organisation and governance of the new Group are in place, allowing the merger to be implemented, the firm stated.

“The synergies will be in line with what was announced in December 2016: €150m in cost synergies and €30m in revenue synergies are expected in a full year (2020) upon completion of the integration process. €190m in costs associated with the integration will also be recognised in 2017 and 2018,” Amundi said.

Amundi’s net income group share was €162m as of 30 June 2016, up 10.9% from January 2017 and up 9% year-on-year. The group’s net revenue was up 7.9% yoy to €478m.

Also, Amundi, listed on Euronext Paris since November 2015, has seen its market capitalisation set at €13.1bn at the end of June 2017.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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