Editorial by Xavier Musca and Yves Perrier
Chairman of the Board of Directors of Amundi
Deputy Chief Executive Officer of Crédit Agricole S.A.
“In a difficult environment, Amundi maintained a development dynamic which generated significant value for its shareholders.” Xavier Musca
In 2018, Amundi achieved its performance targets and maintained a development dynamic which generated significant value for its shareholders.
In a difficult environment, all investment strategies remained buoyant, and net inflows proved strong enough to offset the negative market impact on assets under management. Its full range of capabilities and international coverage enabled Amundi to find additional levers for growth and win new clients. Combined with significantly decreasing operating costs – mainly resulting from achieving the synergies linked to the acquisition of Pioneer Investments – this excellent business performance allowed for a strongly increased net result, generating a 16% rise in dividends, compared to 2017.
Amundi’s 2018 performance is proof of the resilience of its business model and effective development strategy. The successful integration of Pioneer Investments as well as the long-term strategic partnership established with UniCredit strengthen the Group’s range of capabilities, expand its distribution channels and reinforce its international scope.
Amundi keeps moving forward in full compliance with Crédit Agricole Group’s medium-term development plan – called “2020 Strategic Ambition” – and its active contribution to the “Trajectoires Patrimoine” project proves synergies between Group entities are tangible and effective. Amundi’s development is an integral part of Crédit Agricole’s universal bank strategy, as it reinforces the quality of the products and services we provide to our clients, our global development and profitability momentum, and our positioning as a committed financial player.
Chief Executive Officer of Amundi
“Robust results and the successful integration of Pioneer Investments.” Yves Perrier
2018 proved to be an important step in Amundi’s development, for three main reasons.
Firstly, our Group’s results are once again significantly on the rise. Our net accounting result reached 855 million euros, up 25.5% from 2017. We owe this to our healthy business performance and to the positive consequences of the synergies that followed the acquisition of Pioneer Investments. We achieved 42 billion euros in net inflows, which represents one of the highest net new money rates in the industry. Our cost-income ratio reached 51.5% (1), up 0.9 point (2) from 2017. This overall economic performance is all the more remarkable as the 2018 market environment became much tougher as of the second quarter.
Secondly, Amundi also successfully finalised the integration of Pioneer Investments, which reinforced our distribution capabilities, range of expertise and talents. The total amount of synergies to be generated has been increased to 175 million euros – versus the 150 million euros we had planned when the merger was announced – and the implementation has been faster than originally expected.
Last but not least, in line with our pioneering and longstanding commitment to responsible investment, we have built an ambitious plan for the next three years, through which we aim to expand our ESG* approach into all our investment processes – in addition to classic financial analysis – to double the amount we invest in specific environmental and social impact initiatives – going from 10 to 20 billion euros – and to increase our investment in solidarity-based organisations, with Amundi Finance et Solidarité* reaching 500 million euros in assets under management – versus 200 million euros today –. In doing so, Amundi clearly states its goal to be a committed player in all three ESG components: Environmental, Social and Governance.
The Amundi Group is fully prepared to continue on its profitable development path, and starts 2019 as always with renewed and reaffirmed ambition.
(1) Adjusted data (excluding amortisation of distribution contracts and excluding costs associated with the integration of Pioneer Investments).
(2) Comparison with combined 2017 data: 12 months Amundi + 12 months Pioneer Investments.