Paris-headquartered asset manager Amundi has said it wants to double assets under management within its ETF, Indexing and Smart Beta business line to €200 billion by 2023. The declaration comes as it launches a highly competitive suite of core portfolio ETFs at a flat fee of 5 basis points.
Fannie Wurtz, Head of Amundi ETF, Indexing and Smart Beta.
Fannie Wurtz, Head of Amundi ETF, indexing and smart beta, commented, “We have been experiencing strong and steady growth over the past years across all areas of expertise and client segments.
“We will look to meet our objectives by developing new markets while continuing to increase our European presence, where we believe there is still significant room for growth.”
To achieve this target, Amundi says it will focus on three growth themes: increasing client coverage in Europe and Asia, enhancing product offering and investment solutions, and boosting its retail market presence.
In line with its product theme, Amundi has unveiled a range of so-called ‘Prime’ ETFs, designed to offer investors core portfolio exposures at a competitive flat rate of 0.05% across all funds.
Consisting of five equity and four fixed income ETFs, each fund is directly replicated and linked to a Solactive index. The ETFs provide exposure across a range of geographic regions including global, Europe, USA, and Japan.
Wurtz added, “Our product development strategy has always been based on our constant dialogue with clients who are increasingly looking to include ETFs in their investment solutions. Amundi Prime ETF range is built on our experience and outstanding bargaining power as Europe’s largest asset manager. We are confident that this range will meet investors’ needs for cost-efficiency, simplicity and transparency.”
Amundi’s full ETF line-up comprises over 170 funds across equity (plain vanilla and smart beta) and fixed income exposures. These ETFs attracted €3.8bn of net inflows in 2018, taking total AUM to €38.6bn at year-end and establishing Amundi as the fourth largest ETF provider in Europe.
Amundi highlighted that demand was particularly strong for its core equity and fixed income strategies during 2018 with the firm capturing 30% of Europe’s total inflows for emerging market equity ETFs, 35% for European equity ETFs, and 25% for global government bond ETFs.