AMUNDI

Analysis of Amundi share price

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Are you considering trading Amundi shares? In this case, we suggest you, through this complete article dedicated to this stock, to discover more about this French company. You will find useful data about this group and its economic environment with its activities, competitors or partners but also elements that will help you to anticipate the price variations of this stock such as the main strengths and weaknesses of Amundi and the elements that you should monitor as a priority in your fundamental analysis.

Elements that can influence the price of this asset:

Analysis N°1

Financial market conditions are of course the first elements to be monitored as the Amundi group's activities are particularly sensitive to them.

Analysis N°2

The Amundi group communicates regularly and transparently on its medium and long-term objectives. It is therefore interesting to monitor the achievement of the objectives set, particularly with regard to new money, the cost/income ratio, the evolution of earnings per share, the distribution rate and share buybacks.

Analysis N°3

We will also be watching the continued development of the alternative asset management services recently set up by Amundi, which are experiencing interesting growth despite a highly competitive environment.

Analysis N°4

All transactions involving the purchase of holdings or the acquisition of companies by Amundi will of course also be important, as will any future partnerships or joint ventures that are set up.

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General presentation of Amundi

First of all, to help you get to know Amundi better, we offer you a summary of its activities.

The French group Amundi is indeed a company specialized in asset management on an international scale. It offers equity, bond and fixed income management services as well as passive management of index funds and management of non-liquid assets, i.e. real estate and private debt.

1,083 billion in assets under management, which can be broken down as follows according to the type of client and the share they represent:

  • Asset management for insurance clients represents 37.4% of the Group's activities.
  • Asset management for institutional clients and employee savings plans represents 34.3% of Amundi's business.
  • Finally, asset management for a clientele of partner networks and third-party distributors represents 28.3% of this company's business.

It is important to note here that in addition to its core asset management activities, Amundi also operates in the following areas

  • Financial research and analysis through a department specializing in financial markets and economic analysis with the publication of its research work online.
  • Services with the Amundi Services branch, which provides services to other asset management companies.
  • Finally, a lobbying activity is also to be noted since the group spends between €100,000 and €200,000 each year in this area.
Analysis of Amundi share price
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The major competitors of Amundi

Today, Amundi is one of the leaders in asset management not only in France but also in the rest of the world. However, it is in direct competition with other major groups in this sector of activity that it is important to know in order to better anticipate future movements of this stock on the stock market. Here are the most important global players in this field in terms of outstanding assets.

BlackRock

The American multinational company BlackRock is the world leader in this sector. It also specialises in asset management and has been operating in New York since 1988. BlackRock's clients include many institutional investors around the world and it is also the largest shareholder in nearly one in five US companies. It has offices in more than 30 countries and on every continent.

The Vanguard Group

In second place we find another American company with The Vanguard Group which is an investment fund in place since 1975 on the market and which manages several trillions of US dollars of assets. This company also manages more than 180 American funds and more than 200 companies in the rest of the world.

State Street Corporation

Next is the State Street Corporation, also American and known as State Street, headquartered in Boston, USA.

Fidelity Investments

In fourth place is the Fidelity Investments group also known as Fidelity Management and Research which is a multinational company specializing in third party asset management.

Bank of New York Mellon Corporation

Finally, another serious competitor of Amundi is the Bank of New York Mellon Corporation or BNY Mellon which is a financial company whose specialty is the issuance of securities, private banking, treasury management and investment management activities. This company operates in no less than 36 different countries.


The major partners of Amundi

We now invite you to discover some of the recent partnerships that the Amundi group has set up and that have had an impact on the strategic positioning of this company and therefore on its stock price.

NextStage

In 2012 in particular, Amundi joined forces with NextStage as part of a partnership involving capital investment in French SMEs. Amundi thus acquired a 7.5¨% stake in this company owned by Artemis also up to 7.5% following this sale. Thanks to this alliance, Amundi can expand its investment offer in the most attractive and promising French SMEs in addition to its internal investment services and its networks of banking partners.

TOBAM

Also in 2012, Amundi set up a targeted partnership with TOBAM, this time for a distribution agreement. Amundi agreed to make TOBAM's expertise in the anti-benchmark model available to its international clients. As part of this agreement, Amundi also bought a 17.5% stake in TOBAM from CalPERS and its employees. TOBAM is also an asset management company with more than €2 billion of assets under management for its French and international clients.

Goldman Sachs

Finally, in 2018, i.e. very recently, Amundi also established a strategic partnership with Goldman Sachs and its subsidiary Goldman Sachs Securities Division. This time, this agreement concerns the management of Goldman Sachs' Luxembourg fund platforms by Amundi in relation to Goldman Sachs' quantitative strategies and its alternative UCITS fund offering. The objective here is to boost Goldman Sachs' development among institutional investors and medium-sized financial institutions.

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The factors in favour of a rise in the Amundi share price:

First of all, Amundi's positioning in its sector of activity is of course an undeniable advantage. Indeed, the French company is currently the leading European player in the asset management sector, but also ranks tenth worldwide in this sector. This of course gives it a certain strength of negotiation and persuasion with its clients and a significant interest from investors around the world.

Another undeniable advantage of the Amundi group is the good distribution of its activities. Indeed, the company's activities are divided between savings solutions, which concern more than 100 million individuals worldwide and generate 26% of its revenues, and activities concerning investment solutions for institutional clients, which are close to a thousand and generate almost 74% of revenues. Thanks to this distribution, Amundi is less exposed to the institutional segment alone and can find other reliable sources of revenue.

Still on the subject of the Amundi group's activities, we also appreciate the good diversification of these, particularly in the field of real estate assets. This was made possible by the absorption of the Crédit Agricole subsidiary CAII.

Analysts and investors also highlight Amundi's international development strategy, which has been very smart and effective for many years, notably through the subsidiaries of Crédit Agricole and Société Générale and the creation of joint ventures in Asia as well as a large network of third-party distributors. Thanks to this approach, Amundi manages over 48% of its assets in Asia, 42% in Europe outside France and 10% in the rest of the world. Similarly, Amundi's assets under management are also spread over different types of assets, such as bonds (nearly 50%), cash (nearly 19%), equities (nearly 12%), multi-assets (nearly 12%) and structured and alternative products (nearly 7%).

Finally, another very reassuring element with regard to Amundi is the fact that this company is in a particularly healthy financial situation and is rated Investment Grade.

The factors in favour of a drop in the Amundi share price:
  • First of all, Amundi has suffered from a rather unfavourable financial environment in recent months and years, with interest rates at a very low level and a particularly volatile equity market.
  • There was also a negative market impact on inflows, which came mainly from insurance and institutional clients.
  • Although Amundi's international development strategy is one of its main strengths, it is regrettable that the group is not more present in certain interesting regions such as North America.
  • Still on the subject of the group's weaknesses, investors have recently been rather disappointed by the abnormally low level of margins and performance fees, which are still under pressure today.
  • Finally, the fact that Amundi's share price has recently moved below its 2015 IPO price suggests that such a situation could recur and makes investors more cautious about taking long positions.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

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