Jamie Spencer
Europe’s biggest fund manager, Amundi, reported quarterly inflows in line with expectations on Tuesday, driven by growing investor interest in funds that track the market. This follows a shift in investment from the United States to Europe after Donald Trump’s election as president.
Strong Net Inflows and Record AUM
Amundi saw net inflows of 31 billion euros ($35.35 billion) in the first quarter, surpassing analysts’ average expectations of 27 billion euros. These inflows brought total assets under management (AUM) to a new record of 2.25 trillion euros by the end of March, marking a 6% increase from the previous year.
Significant Boost from New Mandate
The strong inflows were largely driven by a 21 billion-euro boost from a new mandate with the People’s Pension, one of Britain’s largest trust pension schemes. This mandate is focused on managing a climate-focused equity index portfolio, underscoring the growing interest in sustainable investment strategies.
Shifting Investment Trends: Europe vs. U.S. Equities
Amundi’s Chief Executive, Valerie Baudson, noted that recent market movements have favored European equities, with first-quarter allocations showing a clear rise in European stocks while U.S. equities saw a decline. This trend was further illustrated by outflows from exchange-traded funds (ETFs) tracking U.S. indexes in favor of European ETFs, reflecting a broader shift in investor sentiment.
Concerns Over U.S. Market Volatility
Despite recent market turmoil following Trump’s sweeping announcements on tariffs, Baudson downplayed concerns regarding the potential risk to Amundi’s AUM. She emphasized that the company remains committed to growth through acquisitions, stating, “We remain a natural consolidator of the market, and that hasn’t changed and won’t change.”
Impact of France’s Tax Hike
Amundi’s first-quarter adjusted net income fell by 4.5% to 303 million euros, in line with expectations. This decline was primarily due to France’s temporary tax hike on large companies, which is expected to cost Amundi a total of 72 million euros in 2025, with 46 million euros of that amount impacting the first quarter alone.
