Amundi Reaches Record €2.2 trillion AUM

This quarter marks a new milestone for our Group in the achievement of our 2025 Ambitions development plan, whose strategic priorities have largely contributed to the growth of activity and earnings.

ETFs

Our ETF franchise exceeded €250bn in assets under management at the end of September, up +31% year-on-year, thanks in particular to very dynamic net inflows reaching +€17bn since the beginning of the year, including +€8bn in Q3; we were the second largest asset gatherer in the European ETF market this quarter ; these inflows are well diversified between equity and bond products, with a high share of products classified as responsible investments in net inflows (€3bn, or 34% market share).

Third-Party Distribution

Our Third-Party Distribution business reached €377bn in assets under management at the end of September, up +24% year-on-year, with net inflows over 9 months of +€19bn, of which +€7bn in Q3, to which all regions and asset classes contributed – ETFs, treasury products and active management.

Asia

Our assets under management in Asia increased by +17% year-on-year to €458bn, of which €103bn in direct distribution; strong net inflows of +€30bn over nine months in the region continued to be fuelled by the success of our Indian Joint Venture SBI MF as well as our direct distribution in Japan, Singapore, Hong Kong, and also in China outside the 2 Joint Ventures.

Technology & Services

Our Technology & Services offering is also experiencing strong growth, with technology revenues of €54m over nine months, up +28% compared to the same period in 2023, and even +42% Q3/Q3; our Fund Channel fund distribution platform exceeded €490bn in assets at the end of September 2024 and signed a distribution agreement with ING in Germany; Fund Channel has also integrated the technology of the fintech AirFund into its ecosystem to digitise access to private markets; these advancements contributed to Fund Channel being ranked “Best Distribution Platform” for the third consecutive year by the consulting and research firm Platforum.

Fixed income

Our fixed income expertise platform now manages €1,160bn in assets¹ in a very wide range of solutions, from treasury products to target maturity funds, benefiting from client appetite for investment solutions that offer attractive returns and capital protection; these solutions have raised +€45bn¹ over nine months, of which +€14bn¹ in Q3 thanks to sustained activity in active fixed income strategies and ETFs.

Victory Capital

The partnership project with Victory Capital reached an important milestone with shareholder approval of resolutions² necessary to finalise the transactions, expected in Q1 2025. As a reminder, this partnership aims at creating a larger US investment platform, via the contribution of Amundi US to Victory Capital in return for Amundi taking a 26%-stake of the combined entity as well as 15-year distribution agreements, to serve the clients of both companies; Amundi would thus have a greater number of US and global management expertise to offer its clients. The transaction, which involves no disbursement of cash, is expected to bring a low single-digit accretion for Amundi shareholders, with an increase in the contribution of our US operations to the adjusted net income and EPS.

In the third quarter of 2024, the average level of Equity markets³ increased by +1.1% compared to the previous quarter and by +15.6%³ compared to the same quarter of 2023. The European bond markets⁴ also rose, reflecting the shift in monetary policy and the ECB’s decision to cut rates in particular. Year-on-year, our benchmark index increased by +6.3%⁴ in the third quarter of 2024 compared to the same quarter of 2023 and by +2.1%⁴ compared to the previous quarter. The market effect is therefore positive on the evolution of our revenues and net income.

When compared to the 2021 averages used as a reference for the 2025 Ambitions plan, the market effect is only slightly positive.

The European asset management market continues its gradual recovery. Open-ended fund volumes⁵, at +€213bn in the third quarter, continued to be driven by treasury products (+€93bn) and passive management (+€75bn). Nevertheless, the third quarter recorded positive flows in medium- to long-term active management for the second time in a row (+€45bn), driven by fixed income strategies (+€69bn).

Activity this quarter continues to be marked, like the rest of the European market, by risk aversion among retail clients. However, we performed well, driven in particular by ETFs, fixed income, third-party distributors and Asia. Excluding the exit from an insurance mandate, net inflows were positive in all major medium- to long-term areas of expertise – passive management, active management, structured products and real assets -, in all client segments – Retail, Institutional and Joint Venture -, as well as in all major markets – France, Italy, Germany, Asia and the United States.

Our assets under management at 30 September 2024 increased by +11.1% year-on-year (compared to the end of September 2023) and by +1.6% quarter-on-quarter (compared to the end of June 2024), to €2,192bn, an all-time high.

In the third quarter of 2024, the market and currency effect amounted to +€32.5bn (+€175.9bn year-on-year) and Amundi generated positive net inflows of +€2.9bn. As announced at the time of the second quarter results publication, this amount includes the exit of a low-income multi-asset mandate4 with a European insurer, of €11.6bn.

Adjusted for this exit, our net inflows for the quarter were +€14.4bn of which +€9.1bn in Medium-Long Term Assets. It was positive in active management and ETFs, partially offset by outflows from index strategies. Structured products and real and alternative assets also recorded positive net inflows, while treasury products were flat.

Finally, our Joint Ventures continued their solid commercial momentum, with net inflows of +€5.3bn, reflecting a positive contribution from India (SBI MF) and South Korea (NH-Amundi), partially offset this quarter by a slight outflow in China (ABC-CA) despite continued open-ended net inflows in this structure.

Retail clients

Our retail activities recorded net inflows of +€6.3bn, of which +€1.3bn in Medium-Long Term assets, with contrasting developments according to the sub-segments:

• Our Third-Party Distributors business had another very good quarter in terms of total net inflows; all regions contributed to these inflows, which were highly diversified by asset class, with positive contributions from ETFs, treasury products and active management.
• Risk aversion is more likely to affect the activity of our partner network clients in France and outside France excluding Amundi BOC WM, despite the good performance of structured and treasury products as well as bond strategies; Sabadell’s network in Spain continues its momentum.
• In China, our Joint Venture Amundi BOC WM posted net outflows this quarter, as maturing funds were not offset by open-ended fund subscriptions.

Institutional clients

Excluding the loss of the low-income insurance mandate already mentioned, our  Institutional division recorded very positive inflows in Medium-Long Term Assets, in all sub-segments: Institutional & Sovereigns for +€4.4bn, CA & SG insurance mandates with +€2.4bn thanks to the continued recovery of the traditional life insurance Euro contracts this quarter, Corporates and Employee Savings thanks to net inflows in short-term bond products from corporates. Outflows in Treasury Products are to a large extent seasonal.

In the third quarter of 2024, our adjusted net income⁶ reached €337m, up +16.1% compared to the third quarter of 2023. Since the second quarter, it includes the contribution of Alpha Associates, whose acquisition was finalised in early April.

The growth in our net income was mainly due to organic revenue growth, amplified by operational efficiency, which led to a positive jaws effect, and by the very strong momentum of Asian Joint Ventures. However, these results were achieved in a persistent context of risk aversion and inflation.

Our adjusted net revenues⁶ reached €862m, up +10.5% compared to the third quarter of 2023.

The sustained growth in our net management fees, up +9.2% compared to the third quarter of 2023, to €805m, reflects the good level of activity and the increase in average assets under management excluding Joint Ventures.

Our performance fees doubled compared to the third quarter of 2023, a low basis of comparison; however, they were down compared to the second quarter of 2024 (€50m) due to the lower level of crystallisation⁷ in the third quarter than in the second and fourth quarters, as it does every year; however, the performance of our management is at a good level,  with more than 71% of assets under management ranked in the first or second quartiles according to Morningstar⁸ over 1, 3 or 5 years and 257 of our funds rated 4 or 5 stars by Morningstar as of 30 September.

Our Amundi Technology’s business line revenues, at €20m, continued to grow steadily (+41.8% compared to the third quarter of 2023; +13.0% compared to the second quarter of 2024), confirming the development of this business.

Finally, the Financial and other income⁶ amounted to €17m, down slightly compared to the third quarter of 2023 and previous quarters.

The increase in our operating expenses⁶, by +7.4% compared to the third quarter of 2023, to €456m, remains lower than revenue growth over the same period, thus generating a positive jaws effect which reflects our operational efficiency.

This increase is mainly due to:

• the first consolidation of Alpha Associates;
• the provision for individual variable remuneration in line with the increase in our results;
• and finally the acceleration of our investments in development initiatives according to the axes of our 2025 Ambitions Plan, particularly in technology.

Our Cost income ratio improved to 52.9% in adjusted data⁶ compared to the same quarter last year, and remains in line with our 2025 target and at the best level in the industry.

Our adjusted gross operating income⁶ (EBIT) amounted to €406m, up +14.2% compared to the third quarter of 2023, reflecting our double-digit revenue growth amplified by our operational efficiency.

Our adjusted earnings per share² in the third quarter of 2024 reached €1.65, up +16.0%.