On Friday 29th of April, Amundi publishes its results for the first quarter 2022, with net income up +5% vs. Q1 20211,2 published, and presents robust business activity and inflows3 in medium-long term assets. Assets under management reach €2,021bn at 31/03/2022, up +15% year-on-year2.
Robust business activity, driven by Retail and by the main areas of expertise
Against a less favourable backdrop, the quarter was characterised by robust inflows in MLT4 assets (+€21bn excl. JVs), especially in Retail. In the JVs, business activity was solid (+€8.4bn), mainly in India and China.
However, there has been a sharp slowdown since the outbreak of the war in Ukraine.
Overall, given the outflows from treasury products (+€26.3bn excl. JVs) and a negative market effect (-€46.4bn), Amundi’s assets under management totalled €2,021bn at 31 March 2022, an increase of +15.1% year-on-year2 and ‑2.1% vs. the end of December 20215.
Net flows on MLT assets (excl. JVs) totalled €21.0bn this quarter, despite the crisis in Ukraine:
- Retail: solid activity (+€14.4bn), particularly with third-party distributors
Inflows were once again robust, driven by all customer segments, in particular third-party distributors (+€10.8bn) and both active and passive management, and occurred mainly in Europe (Italy, Spain, United Kingdom, Germany). In the international networks (+€1.3bn excl. BOC WM), inflows remained buoyant, especially in Italy and Germany. In the French networks, activity stood at a good level in MLT assets (+€1.3bn) but was offset by continued outflows from structured products.
Amundi’s Chinese subsidiary BOC Wealth Management continued to post robust figures early this quarter (+€2.3bn), bringing AuM to over €13bn. However, business slowed substantially in March, partly due to initial maturities on the funds launched last year, and also due to the new market backdrop and health crisis in China.
- Institutionals: positive flows (+€6.6bn) and treasury product outflows
This quarter was characterised by solid inflows on MLT assets (active and passive management, real assets, ESG solutions), mainly driven by Institutionals and Sovereigns (for instance new Green, Social and Sustainable bonds mandates won in Germany and Japan, new OCIO6 client in Ireland, new client in passive in Israel), as well as CA and SG Insurers.
- High inflows on MLT assets were driven by most areas of expertise:
- Passive management had an excellent first quarter with +€10.6bn in net inflows, bringing AuM to €309bn at end-March 2022. With +€8,8bn in ETF inflows, Amundi is ranked no. 2 in terms of European inflows7 with a market share of 22%. This excellent business momentum is primarily the result of a stronger product range thanks to the acquisition of Lyxor. In total, ETF assets were €191bn at 31 March 2022. Amundi is the number one European player in this area and confirms its leadership with a market share of 14.1%7.
- Active management saw high inflows (+€9.1bn), especially in multi-asset management, with the acquisition of major new clients.
- Growth in Real and Alternative Assets continued, with +€2.6bn in net inflows driven by all areas of expertise (Private Equity, Private Debt, Liquid Alternatives, Real Estate). Assets under management totalled €93bn at the end of March 2022.
Good business momentum in the JVs (+€8.4bn)
The Indian JV continued its growth momentum with high inflows (+€3.6bn), leading to a gain in market share (from 16.4% to 16.9%8). SBI FM is thereby confirming its leadership in India and surpassed the €200bn in AuM threshold for the first time.
In China (ABC-CA), business activity was also robust with flows remaining solid at +€3.6bn (excluding -€0.7bn in outflows on low margin Channel Business products).
Adjusted net income up +5% vs. Q1 2021
Amundi maintained a good level of adjusted net income (€324m) in the first quarter of 2022, despite a less positive environment. This growth was driven by the scope effect (consolidation of Lyxor as of Q1 2022) as well as a sharp increase in revenues and continued excellent operational efficiency (cost/income ratio of 50.6%).
Net revenues (excluding financial income)9 were up sharply:
- The sharp growth in net management fees compared to Q1 2021’s reported figure (+16.3%) was driven by the trend in inflows over the last several quarters, and further bolstered by the consolidation of Lyxor and market growth (+8.6% Q1/Q1 for the Eurostoxx average); growth remains very high (+9.2%) compared to the Amundi and Lyxor combined figures for Q1 2021.
- Performance fees remained high (€71m vs. €111m in Q1 2021 and €70m in Q4 2021) and are in the process of normalising.
- Amundi Technology’s revenues (which are now reported in the income statement) increased 37.8% on Q1 2021, confirming its growth (42 clients as of the end of March, particularly with a new robo-advisor solution developed at ALTO W&D10
Operating expenses1were under control (€423m, up 3.4% vs. Q1 2021 combined). As a result, the adjusted cost/income ratio1 was very good and stood at 50.6%. Normalised11 for performance fees, the cost/income ratio (51.8% in Q1 2022) is virtually stable compared to Q1 2021.
Given the buoyant activity of the equity-accounted companies (mainly the Asian joint ventures), their contribution to income increased to €20m vs. €18m in Q1 2022.
Valérie Baudson, Amundi’s CEO comments :
Against a more difficult backdrop due to increased market volatility and the conflict in Ukraine, Amundi has had a solid quarter thanks to robust inflows on medium- and long-term assets, driven by the majority of our areas of expertise and our different customer segments. The acquisition of Lyxor is paying off with solid business momentum in passive management.
The increase in our earnings and high level of operational efficiency shows that our diversified model is resilient and our strategic choices are appropriate
1. Adjusted data: excluding amortisation of intangible assets and excluding integration costs. See page 6 of the Press Release for definitions and methodology
2. Change from Q1 2021 reported data, excluding Lyxor
3. Assets under management (including Lyxor as of 31/12/2021) and net inflows (including Lyxor in Q1 2022 only) include assets under advisory and assets sold and take into account 100% of the Asian JVs’ inflows and assets under management. For Wafa in Morocco, assets are reported on a proportional consolidation basis
4. Medium/Long-Term Assets: excluding treasury products
5. Including Lyxor AuM
6. Outsourced Chief Investment Officer solutions
7. Source: ETF GI end march 2022
8. Source: AMFI. Market share at end-December 2021 and end-March 2022
9. Net revenues excluding financial income and other net income, including asset management revenues and revenues from Amundi Technology which are now isolated on a specific line
10. ALTO W&D: Amundi Leading Technologies & Operations Wealth & Distribution
11. Cost/income ratio (in %) excluding exceptional performance fees (= higher-than-average performance fees per quarter in 2017-2020)