MILAN, Feb 9 (Reuters) - UniCredit has already booked the provisions needed to cover penalties owed to its partner Amundi as the Italian bank keeps cutting the amount of funds from the French company
UniCredit booked provisions to keep cutting Amundi funds until contract ends
UniCredit's Fund Management Strategy
MILAN, Feb 9 (Reuters) - UniCredit has already booked the provisions needed to cover penalties owed to its partner Amundi as the Italian bank keeps cutting the amount of funds from the French company in client portfolios, CEO Andrea Orcel said.
Contractual Obligations with Amundi
UniCredit's distribution contract with Amundi expires in mid-2027. The bank's relations with Europe's biggest fund manager have been complicated by Amundi's owner, France's Credit Agricole, expanding in Italy and hampering UniCredit's own domestic expansion plan.
Impact on Fund Distribution
Orcel said in a post-result conference call that UniCredit had been distributing clients more of its own Onemarkets funds or those of other providers.
Future Provisions and Penalties
"Every time we do that we pay them a penalty ... and we have taken provisions for most of those penalties that we anticipate for this year and half of next," he said.
(Reporting by Valentina Za, editing by Gavin Jones)
