PARIS (Agefi-Dow Jones) – French asset manager Amundi on Wednesday announced the goals of its strategic plan for 2025. The subsidiary of the Crédit Agricole group, whose assets recently exceeded 2,000 billion euros, aims for average annual growth. adjusted net profit of 5% for the period 2022-2025, excluding external growth operations. The target is similar to its plan for 2018-2022, whose average annual growth in adjusted net income finally reached 7%.
Three-quarters of Amundi’s expected growth between 2022 and 2025 should be driven by core asset management activities, and the rest by developments including Amundi Technology, its Alto investment platform and the B2B Fund Channel.
Amundi has also announced that it will maintain its minimum common dividend distribution rate of 65% – around € 3 billion in cumulative regular dividends expected between 2022 and 2025 – without setting a maximum ceiling. Thus, the manager allows himself the “flexibility” to return the expected surplus capital of 2 billion euros by 2025 by exclusive distribution, if he does not find opportunities to finance external growth that meets his criteria for acquisition.
Presenting the plan to the press, Amundi CEO Valerie Bodson expressed confidence that these goals will be achieved, despite the “difficult” months ahead. Despite the “efficient and profitable” model advertised by its managing director, the firm’s price on the Paris Stock Exchange has fallen by more than 31% since the beginning of the year.
“The price has fallen sharply due to the geopolitical and economic context. We are a little disappointed because it does not reflect the full value and sustainability of the Amundi model, ”said Nicholas Kalkoen, Amundi’s Deputy General Manager.
To prove its full value and ensure its medium-term growth, Amundi intends to strengthen itself both in terms of geographical presence and in terms of experience, services and clientele. In terms of territories, the management company wants to “strengthen” its leadership in Europe, where it intends to “further explore its growth potential”, strengthen its position in the United States and become a leading player in Asia, the region where it plans to receive 500 billion euros in asset management against 372 billion euros at the end of 2021. “We are far from being leaders everywhere in Europe, especially in Germany and Northern Europe,” said Valerie Bodson.
Referring to Asia, she said that Amundi would use its global platform for the region’s most “internationalized” countries, such as Japan or Singapore. In China and India, joint ventures with local partners (BOC Wealth Management and the Agricultural Bank of China in China, SBI in India) will remain the preferred channels of development. The IPO of SBI Funds Management Private Limited, an Indian joint venture of Amundi and SBI, is also still scheduled for 2022, but the current conditions are not favorable for such an operation, said Valerie Bodson. The company also “constantly” monitors the geopolitical situation in China, but creates a risk “limited by its own capital, being an investment activity, not financing.” As for markets such as Malaysia and Thailand, discussions are under way to develop Amundi’s local presence.
At the same time, Amundi wants to grow in all segments of its customers, especially in the segments of third-party distributors. The manager has set a target of € 400 billion in assets under management in this segment by 2025 compared to € 324 billion at the end of 2021, and ambitions to enter the top 5 strategic partners in the world through over-the-counter companies.
In terms of product, Amundi expects, in particular, to increase its assets in passive management by 50% by 2025 compared to September 2021, when they amounted to 282 billion euros, and wants to play a leading role in the accessibility of individuals to real asset strategies. with € 90 billion in assets planned for 2025, compared to € 63 billion at the end of 2021. Amundi relies, among other things, on European long-term investment funds Eltif.
Amundi will also look forward to 2025 in terms of climate commitments. The firm, which unveiled its ambitions for 2025 in this area in December 2021, noted that its Tell the Climate Resolution was 97% supported during its last general meeting in Mozhe. Among its goals, Amundi wants to engage in dialogue with thousands of additional companies on climate change and strengthen its responsible investment offer for all its products and services. This will create a range of “net zero transition” and a target value of assets of 20 billion euros in investment. Valerie Bodson said she was “very confident and calm about the integrity of ESG processes and the reliability of ESG Amundi’s analysis and risk management tools” in response to a question about failures in terms of stable funding for its German competitor DWS.
Finally, Amundi wants to become “the leading provider of technology and services throughout the savings value chain.” Therefore, he intends to increase the assets of Amundi Technology from 36 million euros in 2021 to 150 million euros in 2025. The manager also aims to develop his B2B fundraising platform, the Fund Channel, through, among other things, a new commercial and industrial partnership with Caceis. . Its goal is to achieve more than € 600 billion in distributed assets in 2025, compared to € 330 billion by the end of 2021.
For development, the asset manager, who had just digested the integration of ETF provider Lyxor in early June, will also rely on his foreign growth policy. Amundi, the main consolidator of asset management in Europe, however, imposes certain criteria for new acquisitions. They must accelerate organic growth and meet the company’s strategic priorities. They should also include limited performance risk and show a return on investment of more than 10% over three years, including synergies.
-Adrien Paredes-Vanheule, L'Agefi ed: VLV
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01:11 Eastern Time, 22 June 2022 (05:11 GMT)