Amundi: Amundi announces 2025 strategic ambitions
Amundi announces 2025 strategic
ambitions
Strong growth
momentum maintained
Significant value
creation expected for shareholders
Strategic
priorities
- Strengthen leadership in
asset management
- Lead the way
in Responsible Investment
- Become a first-class
provider of technology &
services across the entire savings value
chain
- Pursue value-creative
M&A
Value creation
pillars 2022-2025
- Strong
organic growth:
c.5% average
net income1 annual
growth2
- Operational
efficiency:
industry-leading cost/income ratio
maintained
<53%1 in
2025, after delivering all synergies related to Lyxor
- Attractive shareholder
returns: ≥65% pay-out
ratio, expected to deliver c.€3bn of cumulative ordinary
dividends
- Excess capital expected to
reach c.€2bn in 2025, to be
used for acquisitions
or returned to
shareholders
Paris, 22 June 2022 –
Amundi, the leading European asset manager and a top 10
global player, today announces its 2025 strategic plan, focussed on
delivering continued organic growth, maintaining its
industry-leading cost/income ratio, and generating strong
shareholder returns.
After having become a global leader in asset
management, and having achieved or exceeded the targets of its
previous strategic plan, Amundi intends to pursue its growth
journey.
Asset management: a
growth industry
The current environment is uncertain with
geopolitical risks and macroeconomic headwinds.
Nevertheless, significant supportive long-term
trends also remain that will drive the asset management
industry growth: the retirement savings gap of an ageing
population, the large pool of retail savings in cash, continued
energy transition financing needs and the rise of middle class in
Asia.
Amundi is well positioned to capture
these opportunities and intends to be a winner in
a changing landscape thanks to its global reach,
credibility in responsible investment, expertise across the whole
savings value chain, digital capabilities, as well as its scale,
efficiency and M&A experience.
2025 ambitions
Growth will be driven by the continued
development of Amundi, by leading the way in
Responsible
Investment, strengthening
asset management leadership and becoming a
first-class provider of services and technology
across the entire savings value chain.
Amundi will also continue to pursue value
creative acquisitions, building on its track
record as a natural consolidator in the industry.
Valérie Baudson, Amundi’s CEO,
comments:
“Our ambition for Amundi is to enhance our
global leadership in Asset Management.
We will strengthen our organic growth worldwide
thanks to our diversified asset management expertise, and to our
emerging technology and services capabilities. We will seize
acquisition opportunities to build on our strong consolidation
track record and accelerate our development.
Our 2025 strategic plan will result in
attractive shareholder returns, both in terms of payout ratio
commitment and ability to generate €2bn excess capital over the
period.”
I. Strategic
priorities3
Strengthen leadership
in asset management
- Drive growth across
all client segments
- Third party
distributors: Reach €400bn in AuM by 2025 (vs. end 2021:
€324bn) by building customised relationships and being a top 5
strategic partner.
- Partner
networks: Access untapped growth potential and establish
new partnerships.
-
Institutional clients: Build on €1.2tn in AuM with
focus on Responsible Investment, bespoke solutions, passive
management and Asian markets.
- Leverage on full
range of expertise
- Active
Management: Capitalise on a comprehensive range of
expertise and solid performance, under a robust and centralised
risk framework.
- Passive
Management: Build the European leader and grow AuM by 50%
by 2025 (vs. end September 2021 AuM: €282bn) by increasing client
coverage, retail penetration and responsible investment offer.
- Real
Assets: Increase our footprint and grow AuM to €90bn by
2025 (vs. end 2021: €63bn) with focus on increased retailisation
and further development across Europe.
- Amplify leadership
in Europe, consolidate position in the US and be a top player in
Asia
-
Europe: Enhance leadership with continued growth
potential across the region.
-
US: Consolidate presence in high-performing
investment hub.
-
Asia: Become a reference player thanks to sizeable
footprint in a fast-growing region, with €500bn of AuM in the
region by 2025 (vs. end 2021: €372bn).
Lead the way in Responsible
Investment
- Continue to
strengthen our responsible investment offer across all products and
services, including the creation of a broad “net zero” offer and a
target of €20 billion of impact investment AuM.
- Increase climate
engagement plans with companies.
- Set internal
remuneration and governance objectives in line with external
commitments (Say on Climate for instance).
Become a first-class provider of
technology and services
across entire savings value chain
- Grow Amundi
Technology revenues to €150m by 2025 (vs. 2021:
€36m).
- Capture powerful
new distribution trends with Fund Channel,
Europe’s 4th largest B2B fund platform, through reinforced
commercial and industrial partnership with CACEIS ; target of over
€600bn in Assets under Distribution by 2025 (vs. end 2021:
€330bn).
Pursue value-creative
M&A
- Explore
opportunities to enhance distribution (access to new partners,
markets, geographies), strengthen expertise and accelerate
deployment of technology and services.
- Strict business and
financial criteria: >10% ROI within three years.
II. Value
creation pillars
1. Continued
strong organic growth
- Amundi will deliver
average annual adjusted4
net income growth of 5%5 over the
period.
- Assumes a broadly
neutral market effect in 2025 vs 2021 average.
- Three-quarters will
come from development of core asset management business; one fourth
from growth of Amundi Technology ALTO offer and emerging services
such as Fund Channel.
2. Resilience
- Amundi has a
demonstrated track record of delivering growth in
a consistent way over time, with no net outflows recorded on an
annual basis since 2015.
- Business stability
driven by a diversified profile
by client segment, expertise, geography, in addition to the
long-term relationship with partner networks.
-
Resilience, resulting from moderate sensitivity to
market variation (see appendix), and operational efficiency are
competitive advantages in the current economic climate. Amundi
targets to maintain an adjusted cost to income ratio below 53%4 in
2025, after achievement of Lyxor synergies.
3. Attractive shareholders
remuneration
- Amundi will
maintain an ordinary dividend pay-out ratio of
at least 65%, leading to
c.€3bn in expected
cumulative ordinary dividends for the period
2022-25.
- The Group retains
the flexibility to return excess capital
(c. €2bn
expected by
2025) to shareholders via exceptional
distribution, in the absence of M&A opportunities that meet its
strict business and financial criteria.
4. M&A optionality to
enhance value
- Amundi will
continue its pursuit of value-creative M&A, building on its
track record as a natural consolidator in Europe.
- Rigorous M&A
criteria remain: acceleration of growth and consistency with
strategic priorities, limited execution risk and strict financial
discipline (ROI above 10%).
- As an illustration,
a deployment of c.€2bn of excess capital in M&A with ROI
>10% would translate in additional adjusted net income of
c.€200m.
***
Appendix
Key sensitivities
- Changes in the equity markets :
+/- 10%
→ +/- €125m
in net revenues
- Changes in interest rates :
+/- 100 bps
→ -/+ €50m
in net revenues
Run-rate net management fees (excluding
performance fees). Market sensitivities do not take into account
potential impact of market movements on flows.
About AmundiAmundi, the leading
European asset manager, ranking among the top 10 global players6,
offers its 100 million clients - retail, institutional and
corporate - a complete range of savings and investment solutions in
active and passive management, in traditional or real assets.
With its six international investment hubs7,
financial and extra-financial research capabilities and
long-standing commitment to responsible investment, Amundi is a key
player in the asset management landscape.
Amundi clients benefit from the expertise and
advice of 5,300 employees in 35 countries. A subsidiary of the
Crédit Agricole group and listed on the stock exchange, Amundi
currently manages more than €2.0 trillion of assets8.
Amundi, a trusted partner, working every
day in the interest of its clients and society.
www.amundi.com
DISCLAIMER:
This presentation may contain projections
concerning Amundi's financial situation and results.
The figures provided do not constitute a
“forecast” as defined in Commission Delegated Regulation (EU)
2019/980.
This information is based on scenarios that
employ a number of economic assumptions in a given competitive and
regulatory context. As such, the projections and results indicated
may not necessarily come to pass due to unforeseeable
circumstances. The reader should take all of these uncertainties
and risks into consideration before forming their own opinion.
The figures presented were prepared in
accordance with IFRS guidelines as adopted by the European Union.
Data including Lyxor is estimated (with assumptions regarding the
exclusion of certain activities retained by SG).
The information contained in this presentation,
to the extent that it relates to parties other than Amundi or comes
from external sources, has not been reviewed by any supervisory
authority, has not been independently verified, and no
representation or warranty has been expressed as to, nor should any
reliance be placed on, the fairness, accuracy, correctness or
completeness of the information or opinions contained herein.
Neither Amundi nor its representatives can be held liable for any
decision taken, or negligence or loss that may result from the use
of this presentation or its contents, or anything related to them,
or any document or information to which the presentation may
refer.
Press
contacts: |
|
Investor contacts: |
Natacha Andermahr |
Nathalie Boschat |
Anthony Mellor
Thomas
Lapeyre |
Tel. +33 1 76 37 86 05 |
Tél. +33 1 76 37 54 96 |
Tel. +33 1 76 32 17 16
Tel. +33 1 76 33 70 54 |
natacha.andermahr-sharp@amundi.com |
nathalie.boschat@amundi.com |
anthony.mellor@amundi.com
thomas.lapeyre@amundi.com |
1 Adjusted data: excluding amortisation of
intangible assets and integration costs relating to Lyxor ; in
2021, adjustment for Affrancamento. 2 Growth vs 2021 adjusted net
income of €1,158m (normalised to exclude exceptional level of
performance fees in 2021 compared to average 2017-2020 level);
assuming a broadly neutral market effect in 2025 vs 2021 average.3
Figures include Lyxor. 4 Adjusted data: excluding amortisation of
intangible assets and integration costs relating to Lyxor; in 2021,
adjustment for Affrancamento.5 Growth vs 2021 adjusted net income
of €1,158m (normalised to exclude exceptional level of performance
fees in 2021 compared to average 2017-2020
level). 6 Source: IPE “Top 500 Asset
Managers” published in June 2021, based on assets under management
as at 31/12/20207 Boston, Dublin, London, Milan, Paris and Tokyo8
Amundi data including Lyxor as at 31/03/2022
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