* Amundi's Q1 inflows and AuM beat analyst expectations

* CEO Valerie Baudson warns of risks from prolonged Iran

conflict

* Amundi seeking to grow in alternative assets, take on

bigger rivals

By Mathieu Rosemain

PARIS, April 29 (Reuters) - Amundi reported

its strongest quarter in four years on Wednesday with 32 billion

euros ($37.5 billion) of net inflows, sailing past analyst

forecasts as investors piled into its exchange traded funds and

bond products amid volatile markets fuelled by the Iran war.

Net inflows for the January-to-March period compared with

analyst expectations of 12.8 billion euros, according to a

company-compiled consensus.

Assets under management rose 7% from a year earlier to

nearly 2.40 trillion euros at the end of March, Europe's

biggest fund manager said, above expectations of around 2.37

trillion.

Chief Executive Valerie Baudson, however, struck a cautious

tone for the rest of the year, citing economic uncertainty.

"We are facing a conflict that could well drag on, of

course, which in that case would carry the risk of a slowdown in

growth and the spread of inflationary pressures," she said.

"The United States may appear to have a more resilient

economy, but in fact it is clearly vulnerable to rising energy

prices, as well as rising fertiliser prices," she added, noting

that the world's biggest economy faces risks of shortages in key

inputs, especially helium, which is critical to chip production.

Amundi is Europe's biggest fund manager by assets after

years of tapping into soaring demand for passive investing. But

it remains far smaller than American rivals including BlackRock ( BLK )

and Vanguard, which have expanded into Europe.

Shares in the Credit Agricole majority-owned firm

have barely risen in recent years, lagging wider markets, with

concerns about whether Amundi will hold on to a distribution

agreement with Italian bank UniCredit, which is set to

expire in July 2027, also weighing on the group.

As part of its growth strategy, Amundihas been looking to

grow in private credit and other alternative assets and compete

with the likes of Blackstone, Apollo and Ares, but it remains a

small player.

Amundi reported adjusted net income of 349 million euros for

the quarter, above the 318 million euros analysts had

projected.

Adjusted net revenue came in at 902 million euros, up 9.7%

from a year earlier.

($1 = 0.8539 euros)