Amundi SA posted second-quarter inflows that surpassed analysts’ estimates, helped by a rebound in Asia where clients returned following several quarters of outflows.
(Bloomberg) — Amundi SA posted second-quarter inflows that surpassed analysts’ estimates, helped by a rebound in Asia where clients returned following several quarters of outflows.
Overall, customers added €3.7 billion ($4.1 billion) in the three months through June, the Paris-based firm said Friday. Analysts had expected inflows of €3.5 billion. Some €900 million of the total came from Asia, where investors had pulled billions of euros in prior quarters.
Amundi’s inflows partially reverse the €11.1 billion surprise outflows seen at the start of the year. Chief Executive Officer Valerie Baudson said the firm attracted investors by adapting its products to meet the needs of more risk-averse clients, and intends to continue that strategy in the near-term.
“I think things are likely going to stay relatively stable in the coming months,” Baudson said in a call with reporters, referring to customers’ current stance.
Amundi’s peformance echoes that of competitors such as BlackRock Inc. and Deutsche Bank AG’s DWS unit, in what was still a mixed period for asset managers.
New money combined with positive market and currency effects lifted assets under management 1.9% from a year earlier, to €1.96 trillion. Asia accounted for €376 billion of the total, an amount Amundi wants to increase to €500 billion by 2025.
“We observed that the situation gradually stabilized over the second quarter,” Baudson said about China. “We see the trend improving.”
Amundi rose 0.4% at 10:16 am in Paris trading, bringing gains this year to 9%.
Adjusted net income rose 19% to €320 million, ahead of analysts’ estimates, helped by better-than-expected cost controls. At 52.3%, fell below the 53% objective Amundi is targeting for 2025. The money manager said syngergies from the integration of Lyxor were ahead of schedule.
“We see this as an overall positive set of results,” Keefe, Bruyette & Woods analysts Irene Rossetto and Thomas Hallett wrote in a note Friday.
As part of its 2025 strategic plan, Amundi has earmarked €2 billion in excess capital for exceptional payouts or acquisitions. For the time being, the firm remains focused on the assessment of potential deal opportunities, deputy CEO Nicolas Calcoen said on the call.
“It’s only in 2025 — if we haven’t found the occasion to use the excess capital in a value-creative way via M&A — that we’d ponder how to return it in another way,” Calcoen said.
–With assistance from Macarena Muñoz.
(Updates with CEO comment in fourth paragraph, shares in eighth.)
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