Amundi sheds 8 per cent AUM amid market upheaval, plans to launch China JV in summer
Amundi, Europe’s largest asset manager, has reported a 7.6 per cent decline in assets under management in the first three months of the year due to “a significant negative market effect”.
Total assets under management fell to EUR1.527 trillion as at the end of March, down from EUR1.65 trillion at the end of 2019. On a year-on-year basis, the group’s AUM was up by some 3.5 per cent.
The Paris-headquartered firm detailed net outflows of EUR3.2 billion, mainly in its institutional and corporates division. Outflows of over EUR15 billion resulted from corporates withdrawing funds from treasury products to meet liquidity requirements, and from institutional and sovereign clients “de-risking”.
But the group received retail and joint venture inflows of around EUR12 billion over the same period, “virtually offsetting the crisis-related outflows from institutionals and corporates”.
CEO Yves Perrier says: “The duration of the crisis and its impact on the business remain difficult to assess. Thanks to its solid business model and its new growth drivers, Amundi is well-equipped to face the challenges brought by this exceptional situation.”
Among the “growth drivers” is Amundi’s plan to create a new asset management company through a joint venture with Bank of China Wealth Management, a subsidiary of Bank of China.
The firm said that, despite the current global health crisis, the JV is “progressing well, on target and on schedule”.
Amundi said it intends to apply for registration with the Chinese regulator (CBIRC) by the end of the second quarter of 2020, in time for an official opening by summer, and a “full operational launch” expected to take place in the second half of 2020. It is aiming to get its first products to market by the end of the year.
Perrier says: “All of the company’s functions, including portfolio management, risks, middle-office and sales, are 100 per cent operational,” thanks to 95 per cent of its employees continuing to work remotely.
“Faced with a crisis of unprecedented scope, Amundi has adapted quickly, thanks to its proprietary robust IT platform and the professionalism of all its employees. I salute their engagement and their spirit of solidarity.”
Amundi has also confirmed it will not pay its 2019 dividend, following the recommendation of the European Central Bank.