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Q3 net inflows reach 15.1 billion euros, surpassing

expectations

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Assets under management hit record 2.32 trillion euros

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Amundi open to extending UniCredit partnership beyond 2027

By Mathieu Rosemain

PARIS, Oct 28 (Reuters) - Amundi, Europe's

biggest asset manager, reported slightly higher-than-expected

net inflows in the third quarter on Tuesday, driven by continued

growth in funds that track the market and demand from its Asian

joint ventures.

Net new money for the third quarter reached 15.1 billion

euros ($17.6 billion), beating the 14.4 billion euros expected

by analysts in a consensus compiled by the group.

This, combined with rising market prices, lifted Amundi's

assets under management to a record 2.32 trillion euros ($2.71

trillion) at the end of September, up 5.7% from a year earlier,

despite steep declines in the U.S. dollar and the Indian rupee

that weighed on some asset values.

Amundi, which is majority owned by Credit Agricole, said its

exchange-traded funds (ETF) business reached 300 billion euros

in assets for the first time.

The French fund manager has grown its passive low-fee

index-tracking business in recent years, but like other European

firms faces fierce competition from the U.S. giants including

BlackRock ( BLK ), State Street Global Advisors and Vanguard.

Adjusted net income for the July-to-September period rose

0.8% from a year earlier to 340 million euros, beating the 323

million euro consensus, as higher management fees and technology

revenues offset increased operating expenses.

Net revenue rose 4.9% to 815 million euros for the period,

driven by a 3.3% increase in net management fees on higher

average assets under management.

Amundi also addressed the scheduled end of its distribution

agreement with Italian bank UniCredit, which expires

in July 2027.

The asset manager said it remained committed to serving

UniCredit's clients and is open to continuing the partnership

beyond 2027, though renewal terms have not yet been determined.

The UniCredit agreement covers 88 billion euros in assets,

including 69 billion euros in Italy, Chief Executive Valerie

Baudson said on a call.

The company's new 2028 strategic plan, to be presented on

Nov. 18, will reflect uncertainty around UniCredit's

contribution from 2027, the group said.

($1 = 0.8575 euros)