Amundi's Risk-Averse Products Attract Investors in Volatile Market

Amundi, one of the world's leading asset management firms, has reported in-line Q4 inflows, driven by strong demand for its risk-averse products. In a volatile market environment, investors are increasingly seeking stability and predictability, and Amundi's focus on passive management, fixed income, and ESG investing has positioned it well to cater to these preferences.

Amundi's ETFs have been a significant driver of growth, with assets under management (AUM) reaching €268 billion by the end of 2024, up +30% year-on-year. This growth can be attributed to investors' preference for low-cost, passively managed strategies, particularly during market volatility. Amundi's ETFs have seen record net inflows of +€27.8 billion for the year, reflecting the strong demand for these products.

In addition to ETFs, Amundi's Fixed Income business line has also performed well, with AUM reaching €1,190 billion by the end of 2024. Fixed income products are often seen as less risky than equity investments, making them an attractive option for risk-averse investors. Amundi's Fixed Income business line saw +€57.5 billion in inflows for the year, reflecting the strong demand for these products.

Amundi's focus on ESG investing has also been a key factor in attracting investors. By the end of 2024, 37% of Amundi's ETFs (in number) met the ESG criteria of the SFDR regulation, compared to a target of 40% by the end of 2025. This focus on ESG investing helps Amundi attract investors who prioritize sustainability and responsible investing.

Amundi's approach to risk management, which involves a dynamic and strategic approach to decoupling asset allocation and active bets from the risk budgeting process, has also contributed to its success. By selectively hedging and using insurance products, Amundi is able to mitigate potential losses and provide investors with a more stable investment experience. Additionally, Amundi's horizon-specific asset allocation and accounting for systematic shifts in asset liquidity further enhance its risk management capabilities.

In conclusion, Amundi's focus on risk-averse products, including passive management, fixed income, and ESG investing, has positioned it well to cater to investors seeking stability and predictability in a volatile market environment. Amundi's strong performance and market share growth are a testament to the effectiveness of its risk management approach and its ability to meet the needs of a diverse range of investors.