PARIS (Reuters) – French asset-manager Amundi <AMUN.PA> reiterated its 2020 profit target even after registering outflows during the first half of the year, since bullish markets have been boosting its margins.
Amundi’s adjusted net profit for the second quarter rose 2.3% percent to 258 million euros (£236.6 million), on the back of a general recovery of markets after a downturn in late 2018.
Its adjusted net profit in the first half of this year rose 2.7% to 505 million euros.
The market upswing offset the negative effect of investors’ fund withdrawals during the period, the company’s Chief Executive Yves Perrier told reporters. Amundi registered 11.7 billion euros in net outflows, he said.
“Risk aversion is what has generated the outflows,” he said.
Amundi said it still expects to book a 1.05 billion euro adjusted net profit in the 2020 full financial year as it aims to keep costs under control and collect more fees.
The fund inflow target for this year and next are “more uncertain”, said Perrier. Amundi expected to collect 150 billion euros in the period 2018-2020. “We focus mainly on adjusted net profit results,” he added.
Asked whether Amundi was looking at the possibility to buy smaller rivals, Perrier said he was always looking at acquisition opportunities, “but there aren’t many on the market”.
(Reporting by Inti Landauro; Editing by Sudip Kar-Gupta)