Finance : Amundi
When AMUNDI launched its IPO on the Paris Stock Exchange in November 2015, the world media discovered that this French company was the largest asset manager in Europe with the potential to challenge its bigger US peers. (An IPO or Initial Public Offering is the first sale of shares by a private company to the public on the stock market). In an industry where scale is important, AMUNDI is already close to one of its most renowned US counterparts, Pimco, in the value of its assets under management. These assets include shares, bonds, index tracking marketable securities (ETFs), real estate etc.
AMUNDI was initially the fruit of a merger of the asset management operations of two French banks, Crédit Agricole and Société Générale in 2010. In the IPO, Société Générale sold its 20% stake to strengthen its capital ratios and Crédit Agricole sold a small part of its own stake to a Chinese bank. Crédit Agricole is the owner of the rest of AMUNDI with a large majority stake of 76%.
AMUNDI’s assets under management have grown by nearly 50% over the last 5 years, reaching $1 trillion to date. It is also very profitable with operating costs to income ratio at less than 53% which compares favorably with the figure of 60% for US’s BlackRock, the world asset management leader.
With the IPO, Yves Perrier, the chief executive of AMUNDI is leading the way into building the French company’s reputation as a brand recognizable worldwide. The offering would also facilitate mergers and acquisitions to make AMUNDI bigger still. Size is important in this financial industry in order to spread overheads and therefore keep fees low for clients like private individuals, sovereign wealth funds, pension funds and corporations and therefore attract an inflow of funds from all over the world. Since 2007, AMUNDI’s performance has been 10% per annum according to the ‘video source’ below.
With no significant presence as yet in the US which represents 50% of world savings and only a small fraction of its assets in Asia at present, AMUNDI has the scale up potential to challenge the bigger US groups like BlackRock in future.
Sources : Bloomberg.com, nytimes.com, lemonde.fr,lesechos.fr
Video Source : https://www.youtube.com/watch?v=Cpjv1GPvB0o
Online publishing, November 2015