Axa IM sees profits jump as AUM falls
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The amount of money run by Axa Investment Managers (IM) fell marginally over the course of 2011, the latest trading update shows.
However, the asset manager was able to grow profits by more than 10% over the same period.
The company’s 2011 results reveal that assets under management (AUM) fell by 0.8% to €512 billion (£427.7 billion) in the 12 months to December 31.
The asset manager attributes the decline to adverse market conditions and the selling of the Axa UK Life business to buyout fund Resolution.
Axa IM ended the year seeing net outflows of €1.2 billion, despite spending most of 2011 in positive territory. This compares with net outflows of €20.2 billion and €18.5 billion in 2010 and 2009, respectively.
When AXA Rosenberg and the voluntary exit from unprofitable employee shareholding plan schemes were excluded, net inflows amounted to €6 billion with the bulk of this coming from institutional clients. (article continues below)
Revenues at the group rose by 6% to €1.15 billion on the back of higher performance fees, real estate transaction fees and an improved product mix. Operating profits advanced by 11% to €222m.
Dominique Carrel-Billiard, chief executive of Axa IM Group, says: “The much enhanced profitability of Axa IM in 2011, exceeding pre-crisis levels, has confirmed the success of our past efforts to reinforce and fine tune our multi-expert model.”
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