Amundi SWOT and PESTLE Analysis

Strength

This section is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. Joint venture with the Bank of China to increase Asian presence: Amundi relies on joint-venture partnerships with banks in Asia to increase their Asian presence and penetrate the market. Amundi is not new to Asia and it has had a strong 50-year presence in the region and has established a solid footprint. As of 2020, 24% of Amundi’s managed assets were in Asia and the company hopes to reach 500 billion euros worth of assets under management in Asia by 2025. In September 2020, Amundi entered into a joint-venture partnership with the Bank of China which is China’s 4th largest bank. In doing so, Amundi became the 1st foreign majority-controlled wealth management company to enter into a joint-venture with a Chinese bank. Amundi hopes to leverage Bank of China’s strong retail presence and agricultural division to increase their client base and broaden their geographical horizons in line with their growth plan for Asia. The new joint-venture is expected to raise over 60 billion euros by 2025. Initially Amundi will offer fixed-income based securities and multi-asset products and later they will move onto ESG offerings.

The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.

Threat

1. Persistently low interest rates result in lower returns on assets: The global interest rates have been falling for a long time and there is consensus among investors, managers, bankers, economists and analysts that the rates will continue to be low in the near future. For asset management companies like Amundi, lower rates indicates lower returns on assets and corporate bonds. This makes it harder for them to satisfy their liabilities and also have enough left to make a profit. Global rates had been stagnant since the financial crisis of 2008 but they were drastically lowered soon after. Most countries around the world have now adopted low interest rates. US is currently at 1.5 percent, UK is at 0.78 percent, Spain at 0.43 percent, France at 0.04 percent and so on. Given the low interest rates, investors have started showing more interest in fixed-income assets over corporate bonds. Real estate has also become an attractive investment opportunity. Amundi is facings pressure to maintain the asset managers’ margins in the low interest, low returns environment.

The remaining section under "Threat" is available only in the 'Complete Report' on purchase.

Political

This section is available only in the 'Complete Report' on purchase.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

1. Rise of passive investing: Passive investing is a strategy that aims to build wealth slowly by maximizing returns while minimizing buying and selling. Investors who wish to undertake passive investing generally follow the buy and hold approach with an asset. Index investing is the most popular form of passive investing where investors prefer to hold ETF’s that track the major global indices. Passive investing is easier to understand and requires leeser effort, so a lot of new investors prefer to do that. Passive investing is also cheaper than active investing because of lower fees, so younger people with lower funds are attracted towards it. Amundi’s passive investing division also provides opportunities for their customers to reallocate some of their portfolio to ESG solutions easily and make their portfolio ESG compliant. In 2020, Amundi was awarded the title of “European ETF Provider of the Year” by Funds-EuropeMagazine.

The remaining section under "Social" is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

This section is available only in the 'Complete Report' on purchase.

Environmental

This section is available only in the 'Complete Report' on purchase.