Its assets under management reached €2.3bn at the end of its twelfth consecutive quarter of growth. This is six times less than BlackRock, but still remarkable on a European scale. Four-fifths of these assets are directly managed by Amundi, while the remaining fifth is held in joint ventures and the partnership with Victory in the United States.
The bulk of inflows continue to come from passive management, where fees and commissions are lower. However, Amundi continues to perform well in active management, which accounts for nearly half of total assets under management. Unfortunately, the alternative management and real assets segment—the most lucrative—is struggling to take off, even though it could represent a major avenue for diversification, as it does at BlackRock.
Net inflows were €67bn above the same period last year. Retail momentum remains unchanged from last year, while institutional investor momentum is on the rise, receiving a notable boost from insurers linked to Crédit Agricole and Société Générale.
Also in the news, the group's performance has been satisfactory across all regions except Italy. However, the very good performance of the markets this year has unfortunately been largely offset by unfavorable exchange rates, particularly the decline of the dollar.
In a sector defined by a structural race for size, Amundi is not in the habit of making a secret of its ambitions. Unfortunately, these have been thwarted twice in recent months, first when AXA's asset management business slipped through its fingers to BNP, and then when the merger with Allianz was abandoned.
Against this backdrop, consolidation continues in Europe, with the announcement of an alliance between Natixis and Generali at the beginning of the year. Amundi would have a natural role to play in this landscape, but national self-interest remains strong and possibly insurmountable; it may therefore be necessary to look beyond European borders, with all the complexities that this entails.
On the stock market, Amundi's share price is at the same level as eight years ago. However, its assets under management have grown by 64% in the meantime, from €1.4 trillion to €2.3 trillion, while earnings per share and dividends have doubled. Since the end of the pandemic, its market valuation has plateaued below ten times earnings and around a dividend yield of around 7%.
The discount on US peers is therefore considerable. It is also persistent compared to Germany's DWS, which has also grown at a satisfactory pace, but still has half as many assets under management as Amundi. This is undoubtedly due in large part to the capital being too tightly locked in, as Crédit Agricole controls two-thirds of it.
A mega-merger that would propel Amundi to the next level would most likely involve a change in this situation. The challenge now is to find the right partner, which is easier said than done.
