PARIS (Reuters) - Amundi, the euro zone’s largest asset manager, confirmed on Wednesday its profit targets for 2020 even after adverse market conditions hit its fourth quarter bottom line.
The company’s relatively upbeat outlook lifted Amundi’s shares, which were up by 2.2 percent in early session trading.
“Our target is to book 1.05 billion euros ($1.2 billion) in adjusted net profit in 2020 with stock indexes at the same level and we will be there,” said Amundi’s Chief Executive Yves Perrier in a conference call with reporters.
The asset manager, which is majority-owned by French bank Credit Agricole, said its adjusted net profit fell 16 percent in the fourth quarter to 225 million euros, although it rose 3.1 percent for the full year of 2018 to 946 million euros.
Asset managers have seen performance fees and new fund collections plummet in light of the recent market downturns.
The company collected a net amount of 42 billion euros to its funds, lower than the 50 billion euros expected.
Nevertheless, Amundi said future profits would be lifted by increased synergies from its merger with rival Pioneer.
Amundi is now targeting synergies from the Pioneer deal of 175 million euros, up from a previous 150 million euros.
Reporting by Inti Landauro; Editing by Sudip Kar-Gupta