Europe's largest asset manager, Amundi, has today reported higher-than-expected net inflows in the fourth-quarter, and the CEO said clients were seeking diversification in Europe and away from the US dollar.
The Paris-based company said investors added €20.9 billion more than they withdrew in the three months to end-December, with strong demand for its passive products. The net inflows exceeded analyst expectations of €16.1 billion, according to a company-compiled consensus.
Amundi's assets under management (AUM) rose 6.2% year-on-year to €2.38 trillion, slightly above the €2.365 trillion analysts had forecast.
Shares in Amundi rose to a record of €82.30, eclipsing the previous high from 2021. They were last up 4.6% at €80.90 a share.
The Credit Agricole majority-owned firm has established itself as one of the biggest players in Europe's Exchange-Traded Funds market, where it competes with US giants including BlackRock and State Street.
But Amundi remains far smaller than the biggest US names and its shares have underperformed in recent years. BlackRock said this month its assets under management had hit $14 trillion.
Amundi is now trying to expand into fast-growing private markets such as private credit and infrastructure, last year announcing an investment in UK alternative asset manager ICG, part of a 2025-2028 plan that targets more than €300 billion of cumulative net inflows, with half expected from Asia.
Clients turn gold to diversity
In a call with reporters, CEO Valerie Baudson said geopolitical uncertainty has driven investors to diversify their portfolios across styles, sectors and regions.
Baudson noted that the significant decline in the dollar had influenced investment decisions regarding American assets, with clients initially turning to gold for diversification.
"We've begun to see a whole series of investments in Europe that were truly diversification investments or investments designed to reduce sensitivity to the dollar and US assets," she said.
Analysts remain concerned about whether Amundi will hold on to a distribution agreement with Italian bank UniCredit, set to expire in July 2027.
"The situation hasn't changed; (the contract) may or may not be renewed," Baudson said, adding that Amundi managed €86 billion worth of assets under the UniCredit distribution contract at end-2025.
Amundi's fourth-quarter adjusted net sales climbed 8.2% year-on-year to €899m, above expectations. Full-year 2025 profit came in at €1.59 billion, up 22% on 2024.
The asset manager proposed a dividend of €4.25 per share for 2025 and announced a €500m share buyback.
