Home » Amundi puts Lyxor into the engine: the objectives of the new ETF giant in Europe

Amundi puts Lyxor into the engine: the objectives of the new ETF giant in Europe

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After completing the acquisition of Lyxor, two months ahead of schedule, Amundi confirms the strategic and industrial advantages of this project and outlines new objectives. The asset management company controlled by Crédit Agricole to make its Lyxor put on the plate a cash consideration of 825 million euros, leading to the creation of the new second largest ETF issuer in Europe. The combined assets of Amundi ETF and Lyxor ETF amounted to € 159.9 billion at the end of May 2021, up € 23.1 billion versus Xtrackers, but still lagging behind. iShares, which dominates the European ETF industry with € 516.8 billion in assets under management.

The integration process will take place progressively over the next two years with several phases (IT migration, legal mergers, constitution of a new organization). Amundi confirmed that the synergies released by the merger with Lyxor they will be in line with what was announced in April 2021, i.e. annual run-rate cost synergies of approximately € 60 million (pre-tax) with full impact expected in 2024 and annual run-rate net revenue synergies of approximately 30 million euros (pre-tax) with full impact expected in 2025. Thanks to this acquisition, moreover, Amundi benefits from strong levers to accelerate its development in the fast-growing ETF segment, while integrating its offer in active management, in particular in liquid alternative assets, as well as in advisory and fiduciary management skills.

Growth target of 50% by 2025

First, the acquisition of Lyxor pushes the Amundi Passive platform (ETF, Index and Smart Beta solutions) to the position of the leading ETF provider in Europe. Overall, the combined business of ETFs represents over 170 billion in assets under management, resulting in a 14% UCITS ETF market share for Amundi. The recently expanded range of ETFs will provide investors with access to one of the largest and most comprehensive ranges of UCITS ETFs available in the market. These are over 300 products that include some of the most interesting strategies, in particular in the sectors ESG, Climate, Thematic, Emerging Markets and Bonds. In a market where size and scale are key, the AuM increase of the Amundi passive platform by over € 282 billion represents an important step in positioning Amundi as a European partner in passive management for both retail and institutional clients, all over the world. The Amundi Passive platform aims to increase its Asset under Management by 50% by 2025.

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Indeed, the demand for ETFs has undeniably grown in recent years among all types of investors. Their inherent benefits of cost efficiency and transparency supported by product innovation have helped to confirm their value as efficient tools for both strategic and tactical asset allocation. This growth is also fueled by additional drivers such as the MIFID regulation on cost transparency, ESG transformation or, more recently, the increased digitization of distribution channels.

The current Amundi product range has been enriched with the addition of innovative products from Lyxor ETF. In particular, with the ETF Green Bond e Net Zero Climate, the recently expanded Amundi ESG & Climate UCITS ETF range will be one of the largest and most comprehensive on the market, with a market share of around 20%. Looking ahead, responsible investing will be the primary focus for any product launch within the platform. Furthermore, in line with the piano ESG Ambition 2025 of Amundi and the Net Zero commitment, Amundi ETF will aim at double the proportion of responsible ETFs available to investors, reaching 40% of the total range of ETFs by 2025.

The creation of Amundi Alternatives

Lyxor integration allows Amundi to enrich its active management capabilities with the addition of one expertise in alternative investments, offering investors access to innovative sources of diversification and performance for their portfolios. Amundi has made the strategic decision to establish a dedicated business line for Liquid Alternatives called “Amundi Alternatives”, thus completing its range of investment solutions to best meet the needs of all its clients around the world, including institutions, private investors and asset managers.

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The Liquid Alternative business is currently worth more than 23 billion euros, including the Liquid Alternative UCITS Platform (6.3 billion euros) and the rapidly growing DMAP (Dedicated Managed Account Platform) with assets of 16.7 billion of Euro. Amundi affirms its position as a leader in alternative investments, with the aim of increase the Au by 50% of the alternative UCITS platform by 2025 and accelerate the development of DMAPs to institutional clients internationally. This ambition is supported by Lyxor’s proven track record of 23 years in the alternative industry, combined with Amundi’s global distribution footprint.

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