Amundi’s assets under management amounted to EUR1,128 billion at 31 March 2017, reflecting good business activity (net inflows of +EUR32.5 billion in the first quarter 2017) and a positive market effect (+EUR12.5 billion) owing to more favourable market conditions.
The net inflows of EUR32.5 billion amount to 3 per cent of assets under management at the beginning of the period. Business was driven by strong sales activity that remains well balanced between the two client segments: retail and institutional investors.
The retail segment enjoyed a strong level of activity with net inflows of EUR15.4 billion in Q1 2017, generated by all distribution channels. Net inflows primarily came from joint-ventures in Asia (EUR8.1 billion) and third- party distributors (EUR4.9 billion), with a particularly solid performance in Europe. International networks generated positive net inflows (+EUR1.0 billion, in particular from Italy), as did the French networks (EUR1.3 billion), confirming the trend seen in the second half of 2016.
The institutional segment once again recorded high net inflows of EUR17.1 billion in Q1 2017, mainly driven by treasury products. Net inflows from corporate clients were up sharply, remaining at a high level in France and achieving a strong momentum in Europe (especially in the UK and the Netherlands).
In the first quarter of 2017, net inflows were mainly concentrated on treasury products, with medium/long-term assets accounting for EUR10.6 billion. Positive net inflows were observed across all traditional asset classes, in both active and passive management strategies. Investor interest in new types of investment management expertise was confirmed and net inflows were high, in particular in real estate (+EUR1.1 billion) and ETFs (EUR4.2 billion), which are important growth drivers. For real, alternative and structured assets, net inflows were negative owing to the end of an ABS5 portfolio management mandate for the ECB (EUR6.9 billion), which took the management of this portfolio back in-house; excluding the impact of this mandate, net inflows on this asset class were positive.
From a geographical perspective, net inflows were strong in all regions, with France accounting for a greater share this quarter thanks to significant investments in treasury products. International activities generated 36 per cent of total net inflows in the first quarter of 2017, amounting to EUR11.7 billion, an increase of 26 per cent on the first quarter of 2016. Over one year, international assets under management increased by 32 per cent, and they now represent 29 per cent of Amundi’s total AUM, and 44 per cent of AUM excluding Crédit Agricole and Société Generale insurance companies.
A sharp increase in net earnings to EUR147 million in Q1 2017 (+13.2 per cent); solid revenue growth and an improved cost/income ratio (-2.2 points)
Amundi’s performance in Q1 2017 continued to follow a steady growth trajectory. Net earnings group share were up 13.2 per cent on the first quarter of 2016, excluding EUR3.5 million (net of tax) in expenses related to the forthcoming integration of Pioneer Investments. This strong performance was driven by a 9.3 per cent (+7.2 per cent excluding scope effect) increase in revenues (to EUR432 million), in line with the growth in assets under management over 12 months. Operating expenses came to EUR223 million (+4.9 per cent and +2.5 per cent excluding scope effect), leading to a 2.2-point improvement in the cost/income ratio, which stood at 51.5 per cent.
The share of net income of equity-accounted entities rose to EUR8 million. Taking into account a tax charge of EUR68 million, net earnings group share amounted to EUR147 million, an increase of 13.2 per cent compared to the first quarter of 2016. Published net earnings (which includes costs related to the integration of Pioneer Investments) amounted to EUR143 million, up 10.4 per cent on Q1 2016.
Yves Perrier (pictured), Amundi CEO, says: “Amundi’s solid results in the first quarter of 2017 demonstrate its capacity to generate profitable growth on a recurrent basis. The forthcoming integration of Pioneer Investments, which should be effective around the end of the first half, will extend this trend and reinforce Amundi’s leadership in Europe.”
