Amundi ups ambitions for 2018-2020
Paris-headquartered asset manager Amundi has reported €70.6bn of net inflows – including Pioneer Investments’ inflows – for the full year 2017.
According to the manager’s figures, total assets under management of Amundi have risen to €1.42trn at the end of last year.
This increase has been supported not only by the company’s inflows but also by the addition of Pioneer Investments’ assets (€242.9bn) after the integration of the manager into Amundi during H2 2017 and a €26.7bn favourable market effect.
Diversified funds gathered most inflows
Retail inflows have accounted for 70% of the inflows recorded in 2017 by Amundi (€49.6bn against €31.5bn in 2016) while institutional inflows reached €21bn (against €28.9bn in 2016).
The drop in institutional inflows was attributed to the €6.9bn mandate reinternalised by the ECB in Q1 2017. Excluding this impact, net inflows were almost stable, said Amundi.
Amundi’s diversified funds have boarded €18.9bn net inflows (€12.1bn in 2016) and these in equity funds have been stable year-on-year (€10.7bn against €10.5bn in 2016). Outflows have been reported in bond funds (€3.8bn over 2017 against €21.3bn). The firm outlined there the impact of the ECB’s reinternalisation of a mandate in Q1 2017 accounting for -€6.9bn.
Real, alternative and structured assets reported overall €2.8bn inflows in 2017 (against €1.3bn). Some €4.9bn inflows have been poured into real estate. ETFs inflows amounted to €10.2bn over 2017.
Some 73% of the firm’s inflows last year have come from the international segment. Amundi noted activity has been robust in Europe (particularly France, Italy and Germany), the United States and Asia.
IPO’s objectives achieved
Amundi highlighted that it surpasses all targets set at the time of its IPOs in November 2015.
The manager’s market cap was €14.1bn at the start of February 2018, having double since the IPO. Adjusted net income was €918m, up 14.1% compared to 2017.
At the time of its listing, Amundi expected €120bn inflows over three years, it finally reached inflows of €131bn in two years (2016–2017).
The company’s cost/income ratio reached 52.4% in 2017 and average earnings per share growth was +12.5% between 2015 and 201712, higher than targeted by Amundi (+5% per year).
Commenting on the figures, Amundi’s chief executive officer Yves Perrier, said: “As in 2016, in 2017 Amundi has exceeded the business and financial targets that were set when it was listed in late 2015. These good results confirm the strength of Amundi’s business model, which has been further boosted by the integration of Pioneer in three key areas: distribution capacity, expertise and talent.
“In this context, the new targets for 2018-2020 provide for acceleration in growth and profitability, with in particular a two-fold increase in net income in relation to the level seen at the time of Amundi’s listing.”
Annual growth of 7% targeted for the 2018-2020 period
Given the strong results reported for 2017, Amundi has raised its initial ambitions for the 2018-2020 period.
The manager targets net inflows of at least €150bn over 3 years (against €120bn for the previous period of 2016–2018), of which €60bn would come from retail, €60bn from institutionals and €30bn from joint-ventures.
Amundi also builds on a cost/income ratio under 53% (against cost/income ratio under 55%) and and adjusted net income exceeding €1.05bn by 2020, with an average annual growth of around 7% for the 2017-2020 period against 5% previously.
The asset manager outlines two priorities: consolidate its position as a reference partner in the retail segment through its savings solutions for networks and distributors as well as accelerate its development in the institutional segment.
For the former, Amundi will leverage on the partnership with the UniCredit networks (particularly in Italy, Germany, Austria and Eastern Europe), strong prospects in the French market and its capacity to provide expertise in order to strengthen relations with third-party distributors and joint venture.
As for institutional plans, the manager wants to boost its penetration rate on all geographic areas (Europe, Asia, US), and to increase its market share.
Also Amundi will reinforce its responsible investment strategy by mainstreaming ESG criteria in its investments policies and bolstering its impact investing policy. SRI’s AUM of the firm amounted to €168bn at the end of 2017.
The firm, whose strategy is based on organic growth, said it will seize targeted acquisition opportunities.