Amundi, Europe’s largest asset manager, suffered net outflows of almost €13bn during the first three months of the year, as investors pulled money from the firm’s treasury products.
The Paris-based firm said that investors withdrew a total of €18.6bn from its treasury funds between January and March, which Amundi said was prompted by the current interest rate environment.
However, money entering Amundi’s equity and multi-asset funds helped to offset some of the heavy redemptions, bringing total net outflows for the quarter to €12.7bn.
Despite the outflows from funds, market and foreign exchange moves helped raise assets under management by 1.5% during the period to €1.76tn. Amundi’s assets under management have increased 14.9% year-on-year.
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It is the final set of quarterly results for Amundi chief executive Yves Perrier, who steps down in May to make way for Valérie Baudson. He will succeed Xavier Musca as chairman of Amundi’s board.
Earlier this month Amundi announced it had entered exclusive talks with Societe Generale to acquire Lyxor Asset Management for €825m.
The deal will see Lyxor offload its passive and active management capabilities for institutional clients, including its exchange traded funds business and the sales and support functions associated with these activities.
Adding Lyxor will boost Amundi’s position in the European ETF market, giving it a 14% share of the booming market.
Perrier said the deal “will be a new driver of growth” for Amundi.
Perrier has become known for his deal making skills during his decade at the helm of Amundi.
READ Amundi CEO Yves Perrier to step down
His most notable transaction was the purchase of Pioneer Investments from UniCredit in 2016 — a landmark €3.5bn transaction which significantly increased Amundi’s distribution footprint and scale.
Perrier also struck a deal with Bank of China subsidiary BOC Wealth Management in 2019 to establish a joint venture. It was the first tie-up between two companies where a foreign shareholder owns a majority stake in a Chinese asset manager (Amundi has a 55% stake).
Most recently Amundi acquired the investment business of Spain’s Banco de Sabadell. The €430m deal took place last year.
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Originally Appeared On: https://www.fnlondon.com/articles/amundi-posts-outflows-of-e12-7bn-during-first-quarter-20210429