Capital development discussed with Amundi-ACBA

ArmInfo. The Minister of  Economy of Armenia Gevorg Papoyan received the delegation headed by  Olivier Marie, a member of the General Management Committee of the  French company Amundi, CEO of CPR Asset Management. The delegation  also included Chairman of the Board of Directors of Amundi-ACBA Asset  Management, CEO of ACBA Bank Hakob Andreasyan.

As reported by the press service of the Ministry of Economy of the  Republic of Armenia, the Minister first congratulated Amundi-ACBA  Asset Management on 10 years of operation in Armenia and successful  management of accumulative pension funds, wishing them further  success in their work.

The meeting discussed the development of business culture in Armenia,  increasing the efficiency of financial markets, the evolution of  accumulative pension funds and the need to develop the capital  market.  Both sides emphasized the steps aimed at increasing the  financial literacy of citizens, which will significantly contribute  to the effective management of financial resources.

The Minister was also presented with the company's future plans and  cooperation prospects.

From the moment the system was introduced until today, there have  been only two pension fund managers in Armenia who received licenses  from the Central Bank of the Republic of Armenia to manage pension  funds within the framework of the ONPS in 2013: C-Quadrat Ampega  Asset Management Armenia and Amundi-ACBA Asset Management. The  shareholders of the first are the Austrian investment company C-  Quadrat Investment AG and the German Talanx Asset Management. In  terms of assets (about 150 billion euros), Talanx Asset Management  GmbH is one of the largest insurance and financial groups in Europe,  represented in 150 countries. The shareholders of the second are the  French company Amundi, which manages assets in excess of 2.2 trillion  euros in 35 countries, and the Armenian Acba Bank.

Management companies offer three investment models: stable income,  conservative and balanced.  According to the rules, the stable income  model assumes that assets cannot be invested in equity securities and  derivative instruments based on them; according to the terms of the  conservative model, the weight of equity securities and derivative  instruments acquired for the purpose of hedging them in the fund's  assets cannot exceed 25%; according to the rules of the balanced  model, the weight of equity securities and derivative instruments  acquired for the purpose of hedging them in the fund's assets cannot  exceed 50%.  Which of the specified strategies is used to place  funds, the participant of the system decides for himself, and his  transition from one model to another is free once within one year.  Those who did not initially make this choice, the system  automatically places in a medium, moderate risk fund, that is,  conservative. As the risk level increases, so does the return on  investment.

As of the end of August 2024, the number of participants in the three  Amundi-ACBA funds reached 495 thousand people, the volume of managed  assets was 517 billion drams (annual growth is estimated at 30- 40%  on average). Of these, 21% or 107 billion drams was income provided  as a result of management.  Over 10 years, the average annual yield  of citizens' pension accounts managed by the company reached 7.2-  7.8%. Thus, if the cost of one share at the time of the fund's  creation was, say, 1000 drams, now it exceeds 2000 drams. All three  funds managed by Amundi-Akba have grown by 100 billion drams in the  first 8 months of this year, of which the income since the beginning  of the year alone was 34 billion drams, the yield reached 8.4%.