Feb 8 (Reuters) – Inflows at French asset manager Amundi (AMUN.PA) rallied in the fourth quarter, particularly on the back of treasury products, a rebound but showing the decline in assets under management in a ‘difficult’ year marked by was, could not compensate for weak markets.
Asset managers whose portfolios expanded during the COVID pandemic saw their cash flows trickle in 2022 as the war in Ukraine, rising inflation and interest rates rocked markets.
Net inflows for the last three months of the year were 15 billion euros ($16.08 billion), compared to 12.9 billion euros of outflows in the third quarter.
“The inflows in the last quarter were in line with the development of the market,” chief executive Valérie Baudson said in an interview with journalists.
“Our clients have focused on less risky assets, which is more than legitimate in the context of the macroeconomic and geopolitical uncertainties we have been experiencing during this time.”
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Europe’s largest fund manager reported assets under management of 1.90 trillion euros at the end of December, 7.7% less than in the previous year.
Amundi, controlled by French bank Credit Agricole (CAGR.PA), said that while markets rallied at the start of 2023, overall sentiment remained relatively cautious.
Falling energy prices, slowing inflation in most economies, better-than-expected resilience in the eurozone economy and China’s economic reopening have boosted markets of late, but global growth is expected to slow this year, international financial institutions forecast.
Strong performance and management fees and cost controls helped push adjusted net income to 303 million euros, up 7.5% from the third quarter, Amundi said.
The company remains positive about business opportunities in China, where its joint venture with Bank of China saw €3.9 billion in outflows in 2022 as it failed to renew products or enter the market due to protracted COVID-19 lockdowns could bring.
“We remain confident in the development potential of China in general and this partnership in particular,” Amundi Deputy CEO Nicolas Calcoen told reporters.
Amundi proposed a stable dividend of EUR 4.10 per share.
($1 = 0.9330 euros)
Reporting by Dagmarah Mackos, editing by Silvia Aloisi
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