Amundi beats Q2 estimates despite €3.7 billion outflow

graph_up_downParis-based asset management firm Amundi suffered net outflows of €3.7 billion in the three months to June but nevertheless exceeded analyst expectations by posting second quarter net revenues of €478 million, up 7.9% year-on-year and €39.5 million higher than expected.

Despite record inflows of more than €32 billion in the first quarter of 2017, institutional investors made redemptions of €11.2 billion during the second quarter – which Amundi put down to “significant outflows in treasury products”.

Combined with inflows of €7.5 billion from retail investors, this led to a 0.6% fall in the group’s assets under management to €1.12 trillion.

Pre-tax profits of €252 million, up 11.3% on the second quarter of 2016, were also ahead of industry expectations of €211 million.

Amundi, which listed in 2015, completed a €3.2 billion deal to buy Pioneer Investments, the asset management arm of Italian bank UniCredit, on July 3, just outside the accounting reporting period for the first half.

Including the acquisition of Pioneer, Amundi’s assets now stand at €1.34 trillion, making it the largest listed asset manager in Europe.

Amundi also reported that first half net revenues rose 8.6% to €910 million, while net profits rose 10.9% compared with the first half of 2016 to €308 million.

Commenting on the firm’s results for the first half of 2017 as a whole – which saw net inflows of €28.8 billion including ETF inflows of €7.7 billion – chief executive Yves Perrier said that the figures confirmed Amundi’s “profitable growth momentum”.

"Amundi’s net inflows and results growth trends exceed the targets announced at the time of the initial public offering,” he said.

Perrier added that the integration of Pioneer is “well on track” and that the acquisition would prove to be “a strong source of value creation”.

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