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AXA IM clients pull €6bn despite strong real asset inflows

AXA IM clients pull €6bn despite strong real asset inflows

Clients of AXA Investment Managers pulled €6 billion (£5.2 billion)  from the company last year as a 'large instutional mandate' exited alongside smaller redemptions across Asia.

In its full year results, the business said this was 'mainly as a consequence of large and low-margin alternative products from China joint-ventures reaching maturity, due to local changes of the regulatory requirements in 2018.'

Factoring in market moves, total assets under management in the business stood €16 billion lower at year end, at €730 billion. 

Revenue was 3% lower. Underlying earnings increased, however, by 6% to €270 million, driven by lower financial charges, lower income tax expenses mainly linked to higher real estate performance fees and higher earnings from Asian joint-ventures.

Chief executive Andrea Rossi (pictured) said: 'To deliver on our ambitions, we continue to focus and accelerate growth in areas of strength, while further leveraging our AXA experience for the benefit of third-party clients.

'I am convinced that the significant steps we took to transform our company in 2018 will bear fruit, enabling us to better adapt our solutions to our clients’ evolving needs.'

Its multi asset strategy optimal income range now represents more than €3.5 billion of assets under management (AUM), while its fixed income, cashflow driven investing (CDI) strategies reached €4.4 billion.

Elsewhere, AXA's evolving economy thematic range accounts for some €4.7 billion in AUM. 

The firm also stressed its commitment to environmental, social and governance (ESG) saying iits integration approach is now being reinforced across its range of open-ended funds in 2019 by applying the newly defined ESG standards, representing €82 billion. 

Its ESG integrated assets now stand at €458 billion, it said.

 

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