French asset manager Amundi today said the value of the assets it manages has dropped by 4.75 per cent compared to three months ago, due to “unfavourable” market conditions.
The Paris headquartered firm said net incomes for the first half of the year were 16 per cent lower than a year ago, as it said its incomes dropped from €630m (£529m) in the first half of 2021 to €527m in the first half of 2022.
The drop comes as global markets have suffered in the face of higher interest rates, soaring inflation, and the ongoing war in Ukraine.
The “unfavourable” market environment saw the value of Amundi’s assets drop 4.8 per cent compared to the previous quarter to a total of €1.925trn.
The firm’s French assets were responsible for the bulk of the drop in value of Amundi’s assets, as losses in the manager’s home country were partially offset by gains in Asia and the rest of the world.
The value of Amundi’s French assets fell 4.4 per cent, from €928bn to €887bn, as the value of its Asian assets increase by 21.6 per cent, from €323bn to €393bn.
The drop in value of Amundi’s French assets came on the back of significant turbulence in European markets, due to surging inflation and Russia’s invasion of Ukraine.
Formed through the merger of Credit Agricole and Societe Generale’s asset management businesses in 2010, Amundi is France’s largest asset manager and one of the largest asset managers in the world.
Amundi chief executive Valérie Baudson, said: “In an unfavourable environment, Amundi maintained a good level of profitability and operational efficiency, demonstrating the robustness of its diversified model.
At the time of writing, shares in the French asset manager are down 1.86 per cent.