Amundi sells structured products worth €2bn in the first half of 2017

Amundi has reported net revenues of €910m for the first half-year of 2017, up 8.6% from the same period in 2016, while revenues for the second quarter of 2017, at €478m, were up 7.9% year-on-year. During the first six months of 2017, the asset manager was the manufacturing company behind 22 structured products, which were worth a combined €1.7bn and targeted at retail investors in France, according to SRP data.

In passive management and smart beta, assets were up 40% over the past 12 months, bringing assets under management (AUM) to €78.3bn at June 30, 2017, while net inflows in exchange-traded funds (ETFs) accelerated to €7.7bn in the first semester, bringing the total managed assets in ETFs to €36.5bn at the end of June, according to Amundi. In active management, real estate remained a popular asset class with record net inflows of €2.2bn in the first half of 2017 (up 28% against the same period in 2016) bringing AUM at June 30 to €23.4bn. During the semester, Amundi also announced the launch of a partnership with International Finance Corp, a subsidiary of the World Bank, aimed at creating a €2bn 'Green Bond' emerging markets fund.

Total AUM stood at €1,121bn at the end of June (€1,342 billion including Pioneer Investments of which the acquisition was completed on July 3, 2017). Net inflows in the first half of 2017 were up €28.8bn, driven by retail, while the second quarter of 2017 saw sustained inflows in retail (€7.5bn), notably in equities, bonds, multi-asset, real assets, alternative and structured assets and "seasonal" outflows from institutional investors in treasury products (€11.2bn), according to Amundi.

Inflows to retail were sustained in the French networks, especially in medium and long-term assets (+€2.4bn) and for third party distributors (+€9.9bn vs +€3.7bn in the first half of 2016) and joint ventures (+€7.3bn). According to Amundi, net inflows remained primarily driven by international sources (67% of total inflows), which totalled €19.4bn. Activity was dynamic in both Europe, mostly Italy and Germany, and Asia. Year-on-year, international assets under management increased 25%, representing 29% of total AUM and 44% of total assets excluding group insurers.

The 22 structured products (€1.7bn) issued by Amundi during the first six months of 2017 were distributed via Credit Agricale Caisses Regionales (11), Credit du Nord (one), LCL (nine) and Societe Generale (one), according to SRP data. Sales during the second quarter of 2017, at €1.1bn from nine products, were up both on the year (12 products raised €1bn in the second quarter in 2016) as well as on the quarter (13 products raised €860m in the first quarter of this year). Amundi had an 18% share of the French market in the second quarter of 2017, making it the third best performing issuer in France, behind Natixis (33%) and Societe Generale (30%).

The best-selling Amundi product this year has been the CA Indicia Euro (Février 2017), a 10-year autocallable which sold €268m during its subscription period. On the Eurostoxx 50-linked product's fifth anniversary, it matures early, providing the underlying index is at or above 120% of its initial level. In that case, investors receive a coupon of 20%.

'Net inflows and results growth trends exceed the targets announced at the time of the IPO,' said Yves Perrier (pictured), chief executive officer of Amundi, in a statement. 'The acquisition of Pioneer Investments has been finalised on July 3, as planned. Its integration is well on track. This acquisition is an important step in the implementation of Amundi's growth strategy and will be a strong source of value creation.'

Click the link to read the full Amundi results for H1 and Q2 2017.

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