Amundi (Euronext:AMUN) Q3 2026 Earnings Call

0:00 Good morning to all. I'm Cyril Meillon, the Head of Investor Relations at Amundi. It's a real pleasure to welcome you to our third quarter results video conference, broadcast via Zoom from Paris, where it's actually very sunny today, although we are underground because the building is undergoing some refurbishment. I'm joined by our Deputy CEO, Nicolas Calcoen, who will lead the presentation in full as our CFO, Aurelia Lecourtier, will not join us today. She is expecting, as we say in French, un heureux événement, a happy event. Nicolas' presentation will last approximately half an hour and will be followed by a Q&A session. If you want to ask a question, please raise your hand virtually and we will take questions on a first-raised, first-served basis. I already noticed that we have a few raised hands, so don't worry, we'll keep the ranks as they are.

0:55 Please can we ask you that you open your mic and your camera to add a more engaging dialogue. Before we get started, a short disclaimer as always. Throughout the presentation, we will make a number of forward-looking statements and mention forecasts. We call your attention to the fact that Amundi's actual results may differ from these statements. Some of the factors that may cause the results to differ materially are listed on our universal registration document. Amundi assumes no duty and does not undertake to update any forward-looking statements. I also wanted to highlight a few changes to our disclosure for you to have in mind. Having completed our stake building, ICG's contribution to our adjusted net income in the equity accounted contributions will be consolidated at 9.9% of their net income versus 7.7% in the second quarter.

1:50 You can find a full technical note on how ICG is integrated into our financial communication, including the lagging contribution on our website. And we're happy to answer any questions. I won't go into any details so far. Next, our first nine months P&L will be compared with the first nine months of 2025 as if Amundi US had been equity accounted at 100% in Q1 2025.

2:16 You are now familiar with this pro forma comparison so I won't go into any more detail.

2:22 Another point to bear in mind for these results is the impact of transfers relating to a very large institutional mandate in India managed by SBI-FM or local JV. 39 billion euros of assets were transferred to other asset managers following a reallocation of a mandate. Given the negligible margin on these assets, the transfers will have no impact on SBI-FM's revenues and earnings, let alone Amundi's. We therefore exclude these transfers when commenting on our net inflows while the full figures, including the transfers, are provided in our disclosure. for you to have a look. And finally, I remind you of the other key client disclosure simplification, which were already in place since we knew this year. Retail, institutional excluding Crédit Agricole and Soggen insurers and Crédit Agricole and Soggen insurers, as well as the employee savings and retirement business has been transferred from institutional to retail. And now I leave the floor to Nicolas.

3:31 Thank you very much Cyril and good morning everyone. I will begin as usual with some key highlights before taking you through our activity and results in more detail. So the story for both the nine months and third quarter was one of record inflows, strong earnings growth and strategic progress. First, business momentum was obviously strong. Nine months inflows exceeded 100 billion euros, including almost 46 billion in the third quarter. These inflows were almost all in medium and long term assets, with a particularly strong contribution from retail.

4:17 As Cyril explained, these figures exclude transfers relating to the large institutional mandates managed by SBI-FM or JV in India. Alongside these strong inflows, the third quarter also brought an important extension of our partnership with Banco Sabadell, taking the agreement through to 2035. This extension reflects the strength of our partnership model and the commercial momentum it continues to generate, with 30 billion euros now managed through our joint platform, up by half since the partnership started in 2020. This business activity translated into strong earning growth, with Q3 net income up by 20% year on year.

5:10 Thanks to very positive jobs, the cost-income ratio improved to 50%. And looking briefly at our GAAP accounting P&L, so without the adjustment we make to better reflect our underlying performance, the net income is materially higher at 675 million euros. This includes a large 300 million capital gain we booked from selling SBI FM shares at the IPO in July. We also continue to make real progress across all of our investment for the future 2028 ambitions, with over 100 billion of inflows across our strategic axes year to date.

5:58 It was also an active period in terms of capital deployment, Finishing our ICG stake building and completing our share buyback. Let's now take a closer look at some of our key strategic developments in the period. Starting with clients, we are converting our strategic ambitions into commercial wins. First, we generated 4 billion of inflows with digital players in the third quarter. We established two new relationships and extended existing relationships with Boursaubank and Scalable Capital. For Boursaubank, we are now their ETF and retirement savings partner, and we also provide their clients with educational tools for investing.

6:51 And with Scalable Capital, we have expanded into short-term cash management through an Amundi money market solution. Retirement Next, where we generated 12 billion of inflows. At the third quarter, we highlighted the significant long-term opportunity created by pension reform in Germany. Having signed two distribution agreements in the second quarter, we added a further third-pillar retirement agreement with an IFA platform in the third quarter. and we are in active discussions with other distribution partners and digital platforms with the healthy pipeline of opportunities. And the same is true in France. I already highlighted our extended partnership with Boursobank.

7:41 In France overall, over the past 12 months, we gathered 4 billion euros in PER retirement product, plan d'épargne retraite, almost double the net inflows of the previous 12 months. Separately, on retirement again, we run two institutional retirement mandates during the quarter. One with the German regional authority and one in Asia. Geographies next, where we saw strong net inflows across our priority regions. 18 billion came from Northern Europe, well diversified across countries, clients and solutions, with many highlights.

8:26 including digital distribution in the UK and Germany, an institutional mandate in Ireland and third-party distribution activity in the Netherlands. I would like to particularly focus on our business in the UK. The business has thrived since we presented it to you with our first quarter of 25 results and we now manage more than 110 billion euros on behalf of a broad range of UK clients financial advisors, wealth managers, charities and endowments, local government pension schemes and partnerships, and across the full range of our solutions. Asia now. Asia generated 8 billion of inflows, excluding the transfer from the mandate in India, and this includes 5 billion from direct distribution and the rest from joint ventures.

9:22 China was the last just contributor this quarter, supported by both joint ventures and direct distribution. Finally, Invest for the Future included a focus on expanding our reach into high potential regions. This quarter, the Middle East contributed a further 2 billion, thanks to institutional mandate and third-party distribution. Turning to solutions next. Starting with active management. Active management inflows were driven by fixed income and multi-asset strategies. We saw, for example, strong traction in Japan, where our material innovation fund was a leading thematic fund by net inflows in the year to date and forced across all fund categories in Japan.

10:16 Victory Capital Strategies distributed by Amundi in Europe and Asia gathered close to 3 billion euros, demonstrating the continued commercial momentum of the partnership. And it was also another good period for the performance of all plastics, including global fixed income and emerging market bonds. ETFs next, with 17 billion of inflows in the quarter. We were also the leading gatherer in European equities ETFs, reflecting the strength of our platform across the region. As I said earlier, Germany is a particularly strong ETF market for us, with more than 100 billion euros of ETF assets with German clients.

11:07 Innovations remain central to our strong ETF position. During this quarter, we launched eight new index ETFs, including several with technology and transition themes and three active equity ETFs combining quantitative and fundamental approaches across global, European and Eurozone equities. Our ETF as a service offer which allows our clients to launch ETFs under their own brand continues to gain traction and we now support eight clients including one new win in the third quarter, and we recently launched a new equity ETF for Lycon.

11:54 Private assets next. The main milestone here was the launch of iMundi ICG Global Private Equity Secondaries, the first ever green fund developed through our partnership. In the meantime, Manmoudi Alpha has also gathered 1.3 billion, supported in particular by two multi-management infrastructure mandates, one in France and one in Germany. And finally, in responsible investment, we launched Arbora Nova, a new institutional fund which aims to mobilize 200 million euros for reforestation projects across Europe. The strategy is designed to improve forest resilience, biodiversity and carbon storage while supporting local forestry and timber businesses.

12:53 Efficiency now. Building on the example we shared with our second quarter result, here is another example of how we are using AI to improve efficiency. As you will know from our various workshops, the Amundi Investment Institute is in charge at Amundi of our macro research and set the framework for our global asset allocation. They have developed an AI-powered model trained on decades of data around crises as well as the Institute methodology. It can therefore think like its analyst. This allows macro environment analysis that is twice as fast, meaning more agile asset allocation and greater conviction in investment decisions.

13:45 And this technology also already generating interest from a variety of external clients, including institutions, wealth managers and banks. I will now take you through our third quarter on nine months' activity and results in more detail. At the end of September, our assets under management totaled 2.6 trillion. It is up by 11% year on year, unstable quarter on quarter, reflecting the transfer related to the large mandate in India and a negative market effect due to the long-term rate hike, completely compensated by positive inflows.

14:30 The year-on-year growth was boosted by a strong market and forex effect of 172 billion euros, mostly thanks to the equitable market, and 6 billion from the integration of our shares in ICG, shown in the chart in the scope effect flows. And most importantly, we gathered LCN flows of 123 billion euros in the past 12 months. In the third quarter alone, we gathered 46 billion euros, which represents an annualized rate of 7%. Let me now go into more detail about our flow performance, which originally originated from old client segments, asset classes and geographies.

15:18 If we take a step back and look at the activity over the first 9 months, net inflows went above the 100 billion mark for the first time since the creation of Amundi. This was driven by record inflows in medium to long term assets at 94 billion euros. The high level of 9 months inflows was reflected in ETF with 45 billion, in active management with 29 billion, including 24 billion in fixed income, and 5 billion gathered in private assets thanks to our multi-management business Amundi Alpha and the first commitment in ICG strategies by Credit Agricole Assurance.

16:04 More specifically, in the third quarter, net inflows into long-term assets were also high, and accounted for 42 billion of the total 46 billion. ETF and active management posted similar contributions to this growth, as highlighted earlier. For active management, this corresponds to an acceleration versus the previous quarter. Treasury products posted net outflows, reflecting ongoing client reallocation from low-duration treasury funds to higher yielding long-term strategies. Investment performance next. You are now used to this slide and its message, which is that Amundi investment teams deliver high unsustained performance.

16:56 On a five-year basis, 78% of our funds outperform their benchmark, despite the very volatile and macro environment. While open-ended funds only on Morningstar ranking, approximately three-quarters of the assets in our funds are in the first or second quartiles over one year, three years and five years periods. We have now 270 Amudi funds that are rated 4 or 5 stars bar Morningstar. This sustained high investment performance clearly supports our sales performance. Looking next at our client segment in the third quarter, let's start with retail, which accounted for roughly half of the net inflows in both the third quarter and over the first nine months.

17:48 Retail inflows indeed totaled 21 billion in the quarter, almost all in medium to long-term assets. Third-party distribution again contributed the lion's share of this, with inflows of 20 billion. This is equivalent to a 17% collection rate on an annualized basis. And these inflows were almost entirely in medium to long-term assets. Outflows from Unicredit networks were 4 billion in the third quarter, while total assets with these networks to that 71 billion at the end of September, including 50 billion in Italy. We did not experience outflows from Unicredit insurance entities this quarter, as we did in the second one. However, we expect 9 billion euros in the fourth quarter due to the re-internalization of the management of their assets. But as you know, the margin of this mandate is similar to the one of the mandates we manage for Crédit Agricole and Saxion Insurance.

19:02 Moving to institutional clients, where net inflows total 20 billion, of which 25 billion in medium to long-term assets, thanks to gains from multiple mandates. The three sub-segments contributed positively, institutional and sovereigns, corporate, as well as credit agriculture and social insurance. The last one benefited from the sustained demand from traditional life insurance in France, with long-term inflows of 5 billion. Finally, Associates contributed close to 5 billion, with 2 billion from our share in the US distribution of Victory Capital, which is a material increase compared to the previous quarters, and 3 billion from the JVs, thanks to positive contributions from all three Asian joint ventures.

20:00 India, excluding of course the transfer, China and Korea. The three together collected 5 billion in long-term assets while experiencing treasury outflows. Now let's turn to our results for the quarter and the nine months. Starting with third quarter revenues. Total revenues were up by double digits year on year. As in the previous quarter, business-related revenues drove our performance. Net management fees were up by 13% compared to last year, thanks to the strong cumulative net inflows over the last 12 months, as well as the positive market effect.

20:50 Guarantee fees from structured products returned to normal from the high level seen in the second quarter. But despite this element, total management fees were still up on a quarter-to-quarter basis. Technology revenues now were up by 17% at 34 million euros. And this business line clearly continued to grow in line with its strategic plan trajectory to double its revenue between 24 and 28. and in particular during this quarter two new clients were signed demonstrating this sales momentum. Net financial income now it is up compared to the same period last year mostly thanks to the rise in the Euro short-term rates. The lower level compared to the second quarter of this year reflects the high level of seasonal dividends and carried interest in the previous quarter as well as the negative mark-to-market effect of rising long-term rates on part of our portfolio during the third quarter.

21:58 Turning to cost now. We were up by 4% compared to the third quarter of 2025, but importantly with 7-point growth below the top-line growth. You can also see that costs have been constantly flat over the last four quarters thanks to our relentless efficiency effort. This has been achieved against the backdrop of the continued ramp-up in investment across our strategic priorities to drive future growth. Third quarter costs also include the charge related to the capital increase reserved for employees at 17 million euros This charge is equivalent to that of the same quarter last year, with no material increase of our cost base quarter on quarter.

22:54 As a consequence of the large positive Jaws effect, the cost-income ratio was during the third quarter 50%. Finally, our net income topped 400 million for the second quarter in euros. It was up by 20% year on year, reflecting our record activity levels combined with continued excellent cost control. It also included strong growth in the contribution from our associates, which is up by 23%. This came from ICG first, at 14 million euros, up versus the second quarter thanks to our increased stakes from approximately 8 to 10%.

23:42 coming from Victory Capital which is up by 10% to 36 million euros thanks to an acceleration of their business. It also factors in one of the charges in the third quarter related to the attribution of shares to management. The contribution from our agent John Ventures was down 6% versus the third quarter 25%. This reflected the sale of 10% of our stake at the IPO and the drop in the Indian rupee. And in fact, at constant rupee and constant stake in SBI-FM, the joint venture's contribution to net income would have been up by 7% compared to last year.

24:29 Please also note that, I would say as usual, the net income includes the tax surcharge in France of 10 million for the quarter. As a reminder, this figure was 9 million last year, so no direct effect on the growth of net income. All this resulted in an EPS of 2 euros and 4 cents, once again above 2 euros. To be noted, for the first time, this EPS takes into account the accretive effect from our share-buy-back program, which we completed mid-September. Indeed, close to 6 million shares were cancelled by the board, which represents roughly 3% of our share capital, and this again was reflected in full in our Q3 EPS computation.

25:20 Let's finish by quickly looking at our financial performance in the first nine months of this year. The trends here are very similar to those of the first half of the year and the third quarter. Indeed, net income rose by 22% year-over-year to an all-time high of 1.2 billion euros. As in the third quarter, this growth was driven by revenue, which are up by 13%, compared to the first nine months of 2025, driven by business-related revenues. Management fees up by 12%, performance fees by 50%, and Technology Revenues, up by 21%.

26:08 This strong growth in revenues and control costs, up by 28%, resulted in a positive Jaws effect of 5%. As a consequence, the cost-income ratio improved further to 49.7%. To mention again, the tax surcharge in France totalled 66 million, brought the equivalent to the amount it represented for the same period last year. All this resulted in a nine-month EPS of €5.82. Before we start the Q&A, let me conclude with some key messages. We have delivered strong earnings growth on both 9-month and third quarter basis.

27:03 This performance was underpinned by record activity and broad business momentum across all client segments, investment solutions and geographies. Importantly, this growth reflects the successful execution of our Invest for the Future 28 strategic ambitions. This strategic progress is also underpinned by our strong financial position, having successfully completed our stake building in ICG and our 5 million euro share buyback. We now have retained more than 1 billion euros of surplus capital, giving us continued strategic flexibility going forward. Thank you for your attention and I will now take your questions.

27:52 Thank you, Nicolas. So it's now time for the Q&A session and we will take, as I said, questions by order of raised hands. So we start with Hubert from Bank of America. Hubert, I think you can open your mic now.

28:07 Great. Can you hear me?

28:08 Yes, very well.

28:09 Thank you. Thanks for taking my questions. I've got three of them. Firstly, can you talk about your exposure to France? I know 44% of your assets come from French clients, but I was wondering how much exposure do you have to French assets such as bonds, equities, etc.? ? First question. Second question is on costs. So costs have been remarkably stable over the last four quarters. I'm wondering if this can be sustained, just given your investment plans, or should expect this to tick up over time? And lastly, like this related, so last question on M&A, just given your strong organic performance, does this raise the bar to do anything inorganic with your building of surplus? Thank you.

28:53 Thank you, Robert. So on your question or exposure to France, as you know, Amundi is a very, very global asset manager. We are present in 34 countries, I think, extremely diversified in terms of assets. And indeed, we manage significant amounts on behalf of French clients, but these clients are themselves very well diversified in terms of investment. So at the end of the day, our exposure to French assets at large, equity, bonds, corporate credit, represents roughly 16% of our total asset under management. And as far as French sovereign assets in particular are concerned, it's less than 3.5% of our total asset under management.

29:46 Your second question was about cost. As you noticed, the very strong quality of our capacity to control cost is linked to all the efforts we make constantly to improve our efficiency. And in particular, you remember, you mentioned one year ago, an optimization plan. covering several dimensions, the merger between CPR and BFT in France, the organization for multi-asset platforms and other streamlining and optimization aspects. And we are, during this quarter, fully benefiting from this effect. And we have, of course, and we are reinvesting this effort in continued investment in our long-term priorities.

30:41 and going forward and intention remains the same to work on our efficiency and reinvest the gains that we are making into investments in the future, whether developing in Asia, investing in technology, developing new solutions. As far as your third question on M&A, Well, our approach hasn't changed. Priorities on organic growth. We are very confident that we can grow organically. I think the last 12 months since we announced the medium term plan has a clear demonstration of this capacity and we are fully confident our capacity to continue.

31:27 M&A is an opportunity, will continue to be an opportunity as long as we find opportunities that make sense, that help us to develop even more rapidly along these priority areas. As far as it makes sense financially, remember our financial criteria, return of investment above 10% over three years, and as long as looking in detail in every opportunity, as we are convinced that we have the capacity to integrate, to execute the deal. So again, we are looking at opportunities if they arise, but we don't need to do M&A and we will continue to grow whatever happens.

32:18 Thank you. So we now turn to the next question. Michael, I think you can open your mic. Michael Werner from UBS.

32:26 Thank you, guys. I've got three questions, please. I guess the first one is just on the Sabadell Agreement. I was just wondering if there was any change in the underlying economics with regards to the new distribution agreement or the extension to 2035. Second, I guess going back to Huber's question in terms of surplus capital, three quarters into your three-year plan, you've got more than a billion of surplus capital. Is there any consideration of returning that to shareholders? Thank you for joining us. Yesterday that they expect a decent amount of flows, but maybe not so much in terms of revenue generation. I was just wondering what your thoughts are in terms of the opportunity there over the next 12 to 24 months. Thank you.

33:34 Thank you. So on Sabadell, as you can imagine, we don't disclose the detail of our agreement. What I can say is that this is a sanction including economic change in the interest of both parties. As far as the second question was about surplus capital, again, no change in our approach. We are For rebuilding our capital position, we have this 1 billion at the end of September, but the priority remains to deploy it in an accretive, value-creative M&A. We keep the flexibility at the horizon of the plan if we don't find opportunities in terms of M&A to return it to shareholders as we did in the past, but the priority now remains to find opportunities, if we find them, to do M&A.

34:40 And as far as the German pension reform, We believe that it's a strong opportunity. We have the experience of a similar reform a few years ago in France and it creates a lot of value. I was mentioning the inflows we got in the last 12 months of 4 billion euros and we really believe that the reform which will be implemented next year in Germany will represent also a strong opportunity. and we have all the ingredients and the capabilities to take advantage of it. We have a strong presence in Germany and we already have 190 billion euros of assets in Germany.

35:28 We have in particular the connection with digital players which already play a key role in retail distribution in Germany and will have a key role in the Distribution of this retirement product we have the ETF capabilities will be a key component of of again these products as I mentioned we already have around 100 billion of ETFs distributed in Germany we have also the capacity to build solutions and we are leveraging on what we have done in in France and in other countries So we are very confident it will be a strong opportunity.

36:13 That said, Germany is a very competitive market, but be reassured that what we'll be doing will be profitable for Amundi.

36:23 Thank you. Next question from Nicolas Herrmann from Citi.

36:32 Thanks Cyril, thanks Nicolas. You can hear me? Yes, we can. Perfect. Thanks for the presentation. Three questions from me as well, please. On passive, private markets, private assets and retail. So on passive... You're clearly taking market share. Just interested in which channels and regions that is occurring. And broadly speaking, which players you see yourselves taking share from. On private, encouraging to see inflows into private assets. I guess, could you just give us some more details behind this? How much of the £2 billion is from Evergreens and other private wealth offerings?

37:18 And I guess relatedly, you've now launched your joint offering with ICG. Just interested in any feedback you can give us and a sense of engagement from the networks. related to that launch. And then finally, sticking with retail, it looks like you've had decent retail inflows outside of third party and the unit credit outflows. So just anything you can say to give us a sense of the composition of the rest and the level of engagement there. Thank you.

37:47 Sure. So in terms of passive, and you probably had in mind in particular ETF, we are indeed progressing well and since the beginning of the year, gaining some market shares. It's very diversified and it's coming from all client channels, all geographies in Europe, in Asia to some extent as well. In terms of channels, I can of course mention in particular digital distribution, where I was mentioning the inflows on the quarter. It's not exclusively in ETF, but it's mainly in ETF. So it's very, very, very diversified. In terms of private assets, we're looking at the third quarter, I think the beginning of the year, the majority of inflows coming from our multi-management platform, so Alpha Associates, the acquisition we made two years ago now, which is very successful.

38:55 It remains in majority with insidious clients in Europe, but quite diversified in Europe. I was in particular mentioning during this quarter two mandates we won on infrastructure, multi-management in infrastructure, one in France and the other one in Germany. but you have also and we start to see a contribution from retail evergreen or purely retail private asset product have a positive contribution but which is lower but you have of course you understand it we just launched a few weeks ago The new Evergreen product with ICG so at end of September we don't have inflows on this product but there is a good traction and a good level of interest from our distribution clients across many geographies.

39:58 And I forgot the third question. The retail flows. So, of course, very strong contribution from third-party distribution. But indeed, you're right, if we exclude Unicredit, also a good contribution from... from our other retail partners, whether in France, in Italy with Crédit Agricole Italy, or with Sabadell, with whom, as you have noticed, the relationship is excellent. And maybe I should also mention Crelan in Belgium.

40:41 Thank you. The next question comes from Angeliki for a return. Angeliki Baraktari, JP Morgan.

40:49 Good morning and thank you for taking my questions. Good morning, everyone. Can you talk a little bit about the dynamics in French retail, also considering the recent demonstrations in France and sort of the cost of living pressures? How is that segment performing for you and what is the outlook for flows there? And then if I can just come back to the cost outlook, there used to be sort of a psychological floor Thank you very much. still apply and we shouldn't really expect to see material improvements in the cost income given investments in the business. And maybe just one last question on the retail flows.

41:52 How much of the 21 billion is passive and how much is active? Thank you.

42:00 So on French retail, we see positive development. I think if we add the French partner networks and third-party distribution in France, it's something around 5 billion euros of inflows during the quarter. I will check this number. Despite what you can see in terms of the environment, one point of the current environment what we see in France is households saving more, which is positive for development. In terms of cost outlook, There's no magic number. There's no rule according to which it could be above or below 50%.

42:50 What we should keep in mind, if you look at the first nine months of the year, is that we obviously benefited from our strong efficiency. but we also benefited from a very positive market development helping to grow the denominator of the ratio and we also benefited from a high level of performance fees during the first quarter. Your third question on retail flows, how much is passive? I will check. I think it's a majority, but clearly not all the flows because we are positive in passive management, in ETF in particular, in active management and in private assets.

43:44 Thank you.

43:45 We'll get back to you on this, Angeliki.

43:48 Thank you. Okay, the next question comes from Arnaud Giblat from BNP Paribas.

44:02 Hi, good morning. I've got three questions, please. First, can we start with real estate? So your real estate funds have had some really challenging performance and understand the SCPI format makes it very difficult and costly for clients to exit. So that's why we haven't seen any inflows. But I'm just wondering, If Amundi are considering offering liquidity solutions to clients there, given the performance. Second question is on ICG. You've talked about the retail evergreen product that you've launched. Sounds good. I'm just wondering if you could give us a bit more in terms of how the economics of that product and future products will be shared.

44:49 And my final question is on Unicredit. Just wondering, out of the 71 billion, I think, of AUM that's left, I'm just trying to figure out what the duration of that asset will look like. Or maybe could you give us the level of gross inflows and gross outflows on a quarterly basis that you've been seeing, just so I can gauge the duration. Thank you.

45:15 So first question on the real estate fund. As you probably know, I think you know there's two kind of retail real estate funds in France. There's the OPCI and there's the SCPI. which have a different feature. OPCI are funds that incorporate a strong liquidity bucket and that offer liquidity to a client. So OPCI, we manage an OPCI called OPCMO and it does offer the liquidity to the clients as expected. We also have SCPIs, and in that case, the inflows that allow meeting redemption requests. So obviously, considering the market context and the challenges around performance, there are no inflows, but we have set up a redemption fund to finance some requests under a limit, under a cap, for requests for redemption on our three SCPIs.

46:24 The question regarding ICG, economics of the sharing fees, obviously I won't disclose the detail of our agreement, but I can assure you that both ICG and ourselves are remunerated on the management and distribution of this fund, and it's profitable for both ICG and Amundi. Regarding Unicredit, we are seeing quarter after quarter net outflows. I don't have the details between gross outflows and inflows, but we are seeing some inflows in some expertise, but clearly more than offset by the gross outflows. and then no specific duration for these funds are open-ended funds so clients can redeem and advisors can advise the clients to redeem when they want for the amount they want.

47:35 Thank you Arnaud. Next question from Jude from RBC. Jude? Hi, good morning. Thank you for taking my question. Two from me. Number one, In Germany, how quickly do you expect inflows to start coming through from the distribution agreements you've signed for the Pillar 3 pensions? Is that something we should expect to be gradual next year or is it more of an on switch? And do you have any sense of the pipeline that those distributors have potentially started to build from their clients? And number two, on the technology business, anything to call out in Q4? Obviously, normally an important quarter for revenues. So anything to say there to help our thinking? Thank you.

48:19 On Germany, so I guess you are referring more specifically to the retirement reform. I have no specific data. It's something I know, specific projections. It's a new reform. It is not yet into place, so it's too early to say. We believe there will be a strong potential, and that's what we hear also from the market, but I cannot provide any... Any specific projections in that regard for something which is not yet in place? Regarding technology, There's no really a regular pattern in terms of seasonality of revenues.

49:05 It can vary from one quarter to another due to the fact that part of these revenues are what we call build revenues, project revenues, project recharge when we are onboarding new clients. And this can create a little bit of volatility from one quarter to another, but no specific seasonality. During this quarter, we had approximately 30% of our revenues which were built revenues and 70% which were run revenues, recurring revenues.

49:45 Okay, thank you. Next question from Russell from Morgan Stanley. Hi, good morning. I wanted to ask a few questions around ETFs.

49:55 We can barely hear you, I don't know if you can try and improve yourself. So I just wanted to ask a few questions around ETFs. Firstly, are you seeing any evidence that pricing pressure in ETFs is intensifying, particularly given the moves further into Germany, obviously a very competitive market right now? keen to understand what you think is the sustainable competitive advantage of a Mundi's ETF product beyond just pricing and distribution and then also connected I wanted to ask about active ETFs does that represent a meaningful margin enhancing opportunity for you guys is it more on the equity side or the fixed income side just wondering what your product pipeline looks on the active ETF side thanks

50:43 So on ETF, in general, indeed, there is a pricing margin pressure. It's not new. We know it. We are accustomed to it and we will continue and we are completely able to face it because it's much more than compensated by the growth in volumes. And we are very confident that we have all the ingredients, the innovation, The connection with the clients to continue to grow very rapidly and continue also our efficiency, our cost income ratio, we are completely able to face this pressure which will continue as it did in the past.

51:29 Regarding active ETFs, clearly the margins are higher. They are somewhere between the average margin you can find on passive ETFs and traditional active funds. The opportunity is meaningful, both on the fixed income and on the equity side. We launched, I think, five products in the first half of the year, which were all fixed income. The three new ones that we launched during the quarter was on the equity side. So as you can see, we are progressively building a more comprehensive offer in that regard. And today, Activity F represents close to 2 billion euros.

52:20 Thank you. Next question from Vanessa Guy from Bloomberg Services.

52:28 Hi, good morning and thank you for your presentation. I had a question on the mix and the margin. So you said retail flows were mostly passive and institutional inflows came across multiple mandates. My question is, is the stable fee margin coming from pricing or from mixed effects such as market gains and active equity upsetting the shift to passive? And what margin are the three-quarter inflows coming in at relative to the group average, if you can disclose this?

53:09 So I want to qualify. We will try to find the number. In retail, it's not all passive or ETF. It's passive and ETF. I was mentioning, for example, the fund we manage, the thematic fund that is growing very rapidly in Japan, is very dedicated to innovative materials, which is very successful. In Japan, it's with retail, it's with distribution, it's active management, and it's high margin. So both the institutional business and the retail business are successful in passive and in active management. In terms of evolution of the margin, Margin is the evolution of the global average margin we have at Amundi is a consequence of the evolution of the various businesses we are seeing.

54:14 And the stability, it's not the rule, but the stability we observe is is the consequence of this mix. We have on one side strong development indeed in passive management, but we are also developing active management. We have private assets that start to grow. We have a strong contribution from retail. All this explains the more or less stability we have been observing over the recent period.

54:44 Thank you. Next question from Oliver. Oliver Carrofos from Goldman Sachs.

54:53 I know, can you hear me okay? Yes, we can, yes. Great morning, Oliver Crellis from Goldman Sachs. Two questions for me, please. Number one, Just taking a step back, if we look at inflows for the market into European domiciled ETFs on the passive side, it's obviously been building for years, but 2026 has really been a step change, a really big acceleration. Just as Europe's biggest passive ETF manager, could you give some perspective on what you think is driving the real step change and acceleration this year? Any perspective would be appreciated. And then the second question on specifically on digital distribution platforms. I appreciate there'll be a lot of jurisdictional and geographical nuance here, but could you give us some insight into your distribution fee economics with these digital platforms and really the kind of net fee margin economics, just trying to get a sense of how attractive this growing flow is to you. Thank you.

55:54 On the growth of the ETF market, it's indeed accelerating. It is pushed by the increased penetration of ETFs in all client segments, in particular in retail. It's probably what is really driving this acceleration. It's increased penetration in retail through digital platforms first, because as I said, with digital platforms, Majority of inflows are on ETF. It's not exclusively on ETF, but the majority of the flows in ETF. And it's generally where it starts when these platforms start to go to and to propose saving solutions. And it also starts to develop also with more traditional players who start to offer access to ETF or to propose solutions built using ETF.

56:55 That was for your first questions. On digital platform and economics, we clearly don't disclose any of this. Be reassured, as always, at Amundi, these developments are profitable and this business is profitable for Amundi.

57:15 Thank you, Oliver. The next and apparently last question is coming from Sharad from Deutsche Bank.

57:23 Thank you, Cyril. Good morning, all. So most of them have been answered. Just have one pending on associates, particularly the India performance since its listing has not been very encouraging. INR depreciation continues to weigh. So I wanted to understand what you're seeing on the ground and the outlook for near-term flows, as well as if you have any justification for the underperformance versus other Indian peers since your listing. Thank you.

57:54 So on India and the activity with SBI-FM, we continue to see positive development. In the third quarter, the flows were positive, despite some outflows in the money market fund, but on active management, it was positive. Maybe not the same level of inflows at some of very good quarters in the past, but again positive. And you have also to take into account that in the recent period, the teams at SBA-FM have also been mobilized a lot by the successful IPO. So again, continued positive development. Going forward, we are very confident because the market opportunity is huge. I think it's less than 10% of Indians that do invest have access to saving solutions.

58:48 The penetration of saving solutions and asset management is still very low. The economy is growing very fast. And we, SBI, can rely on a very diversified distribution capabilities. Of course, the strength of the SBI network, which is the first bank in India, but also a lot of other channels. So they have all the ingredients to continue to capture the upcoming growth in the years to come. As far as the performance of SBI-FM since the listing, I think it's in line with peers, so no worry on that front at all.

59:39 Okay, thank you. I don't think that we have any further questions, so maybe we will leave one minute to any second thought. No? Okay. So if you have any concluding remarks, Nicolas?

59:59 Looking forward to discuss new developments in one quarter.

1:00:06 Many thanks. And we are obviously at your disposal if you have any further questions on the figures or the results at the IR team, Thomas, Annabelle and myself.

1:00:18 Thank you very much. Have a good day.