Amundi beats estimates with Q2 net inflows, profit jumps 29%

By Mathieu Rosemain

PARIS, July 30 (Reuters) - Amundi on Thursday reported net inflows of €24.4 billion in the second quarter, double forecasts, and posted record quarterly earnings as Europe's largest fund manager benefited from buoyant markets.

Adjusted net income at the Credit Agricole-backed firm rose 29% year-on-year to €431 million ($492.03 million) in the second quarter, above a company-compiled consensus of €375 million.

Net inflows for the quarter were driven by strong demand for index-tracking and fixed-income funds as well as steady retail investment through third-party distributors.

Assets under management climbed 14% year-on-year to a record €2.58 trillion at the end of June, helped by market and currency gains and the first-time consolidation of British private credit firm ICG.

While Amundi is the biggest Europe-based fund manager, it is far smaller than American behemoths such as BlackRock and Vanguard, which are fierce competitors including on its home turf.  

In a call with reporters, Chief Executive Valerie Baudson highlighted the IPO of Indian joint venture SBI Funds Management, valued at more than €10 billion at its listing, as a quarterly highlight. 

Amundi expects the listing to yield a capital gain of around €300 million in the third quarter. 

Looking forward to the second half of the year, Baudson cautioned that market valuations remain elevated.

"A point of attention (is) the level of markets, which are objectively high today," she said, while voicing "very strong confidence" in Amundi's ability to navigate a potentially more turbulent environment in the months ahead.

($1 = 0.8760 euros)

(Reporting by Mathieu Rosemain; Editing by Tommy Reggiori Wilkes)