Overview of the Partnership

UniCredit's Chief Executive Andrea Orcel recently attended the annual report presentation of the Bank of Italy. This event not only highlighted the bank's current performance but also set the stage for discussing the future of its strategic partnership with Amundi, Europe's largest asset manager. As the partnership approaches its 2027 deadline, Orcel emphasized that continuation hinges on mutual benefits for both entities.

Current Asset Management Landscape

In 2021, Amundi accounted for a staggering 80% of UniCredit's assets under management. This reliance, however, has prompted Orcel to strategically reduce this percentage, as he aims to improve the bank's fee income. By diversifying their asset management approach, Orcel believes UniCredit can enhance its profitability and better navigate the competitive landscape of financial services.

The Evolution of the Partnership

During a recent Bloomberg conference held in Milan, Orcel addressed the evolving dynamics of the partnership with Amundi. He articulated a clear vision for the future, where agreements will rely on Amundi’s role as a genuine partner, rather than just a service provider. This shift illustrates a growing emphasis on collaboration, strategic alignment, and mutual growth in the financial partnership.

Challenges and Opportunities Ahead

Despite his cautious optimism about the future, Orcel acknowledged concerns raised by analysts regarding Amundi's earnings, particularly in light of strained relationships with its parent company, Credit Agricole. Such challenges may influence discussions and decisions about the continuation of their current partnership model.

Notably, UniCredit's strategic moves include a shift in focus not only towards Amundi but also towards enhancing its internal asset management capabilities through its Onemarkets team and partnerships with companies like Azimut. These shifts are primarily aimed at bolstering profit margins while maintaining flexibility in service offerings.

Aspiring for Greater Asset Management Retention

Orcel outlined ambitious targets for UniCredit, particularly the intention to increase asset management retention from 79% to 85%. This goal signifies a paradigm shift away from dependency on external asset managers. As the bank moves closer to achieving this target, Orcel hinted that owning an asset manager may no longer be a feasible option moving forward.