Amundi S.A (AMUN) | News Based Sentiment Analysis

• On September 10th, Amundi released an in-depth economic analysis, addressing macroeconomic changes, inflationary pressures, and policy divergence, alongside insights into France's political landscape and its impact on fixed income and equity markets. This comprehensive report signals Amundi's commitment to providing investors with informed perspectives on the evolving economic environment.
• Amundi strategically shifted its investment focus towards Emerging Markets, as indicated in their "Global Investment Views" report on September 12th, while also favoring a rotation from the US market to Europe and Japan due to rising concentration risks in the US and decelerating US growth. Despite US equities reaching new highs in August, Amundi sees greater potential in international markets.
• Amundi continued its active portfolio reshaping throughout September, exemplified by the issuance of 34,000 new ETC securities as Tranche 749 of its Amundi Physical Gold ETC series on September 17th, bringing the total outstanding to 63,777,859. Each security represents 0.03965694 fine troy ounces of gold and carries a Total Expense Ratio of 0.12% per annum.
• A significant controversy emerged on September 17th, with an investigation revealing that Amundi invested nearly €1.5 billion in fossil fuel companies – including €145 million in Shell – through funds marketed as "green" or ESG-compliant. This raises concerns about potential “bending of the rules of sustainable finance” and misleading investors.
• Reflecting a desire to involve employees in the company’s development, Amundi initiated a capital increase program for its employees, "We Share Amundi," starting September 15th. The offering allows employees to purchase up to 1,000,000 shares, less than 0.5% of the company’s share capital, at a 30% discount (€44.85 per share).
• Amundi further adjusted its portfolio, increasing its position in Rio Tinto PLC by 224.0% on September 12th, purchasing an additional 159,636 shares valued at $13,491,000. This substantial increase signals confidence in the mining sector, following earlier portfolio adjustments in Q1 2025.
• Earlier in the month, on September 1st, Amundi reported strong H1 2025 results, achieving record Assets Under Management and inflows, demonstrating continued growth and investor confidence. The company is also preparing for potential Federal Reserve rate cuts, anticipating three cuts by the end of 2025 with an 86% probability of a cut in September.

The Investment Story: September was a month of contrasts for Amundi, marked by strong financial performance and strategic portfolio adjustments alongside a significant controversy regarding investments in fossil fuels through its “green” funds. The company is actively positioning itself for a changing economic landscape while navigating reputational risks.

What It Means for Investors: The strong H1 results and proactive portfolio adjustments suggest Amundi is a well-managed asset manager. However, the “green fund” controversy introduces a layer of complexity, potentially impacting ESG-focused investors and requiring careful monitoring of the company’s response.

Looking Ahead: Investors should closely watch Amundi’s performance in the second half of 2025, particularly how their fixed income strategy performs with potential rate cuts and the impact of the “green fund” controversy on investor sentiment. The capital increase for employees, scheduled for completion on October 23rd and listing on October 27th, will be a key event to monitor.

The Bottom Line: Amundi remains a financially robust asset manager, but the recent controversy surrounding its “green fund” investments introduces a significant risk. Investors should carefully consider their ESG priorities and monitor the company’s response to these concerns before making investment decisions.