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Clients’ Inclination towards Low-risk Investments Propelled Amundi’s Assets Under Management, marking a 7% Increase

On Wednesday, Amundi (AMUN.PA), the largest fund manager in Europe, announced a 7% increase in its assets under management compared to the previous year. This surge was driven by heightened demand for low-risk investment products amidst prolonged market uncertainty.

Financial market instability has been fueled by significant increases in interest rates, persistent inflation across Europe, and unforeseen geopolitical developments. This economic downturn on the continent has prompted both retail and institutional investors to gravitate towards safer investment options such as treasury funds, structured products, and exchange-traded funds (ETFs), as evidenced by Amundi’s fourth-quarter results.

In the fourth quarter, Amundi’s total assets under management (AUM) grew by €133 billion ($143 billion) compared to the previous year, reaching €2.037 trillion. This represented a 3.2% increase from the previous quarter. The majority of the €13.2 billion in inflows, excluding contributions from joint ventures, stemmed from treasury products and “passive management,” which seeks to mirror the performance of a particular market index or benchmark.

Amundi, under the control of French bank Credit Agricole (CAGR.PA), revealed its acquisition of Zurich-based multi-manager Alpha Associates, managing €8.5 billion ($9.14 billion) across various assets like private debt, infrastructure, private equity, and venture capital with a team of 70 individuals. Chief Executive Valerie Baudson stated in a call with reporters that Amundi would pay a maximum of €350 million for Alpha Associates. This payment comprises an initial €160 million and a subsequent sum of up to €190 million, contingent on the growth of the targeted company.

Baudson reaffirmed the group’s 2025 objectives, which include an average annual net income growth of approximately 5%. Amundi plans to propose a dividend of €4.10 per share for 2023, consistent with the dividend paid for 2022.

In the fourth quarter, Amundi’s adjusted net income matched market projections, reaching €313 million, marking a 3.4% increase from the previous year. The group’s adjusted net revenues for the period also rose by 2% to €806 million.

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