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Axa IM's earnings rise, despite 85% slump in inflows

Axa IM's earnings rise, despite 85% slump in inflows

Axa Investment Management (IM) saw a fall in net inflows fall 86% from €56.4 billion (£50 billion) to €7.9 billion in 2017.

The asset manager put the year-on-year decline inflows down to a fall in flows from Axa IM’s joint ventures (JV), specifically its Chinese JV which was hit by changes in the country’s regulatory environment.

‘The decline in NNM inflows compared to the 2016 record was expected. It is mainly due to a decline in inflows from Axa IM’s JVs, which was anticipated and driven in part by a number of products reaching maturity and not being replaced due to new regulatory requirements relating to our Chinese JV,’ said Axa IM CEO Andrea Rossi (pictured).

'It is worth nothing that this is a low margin business so the outflows have had a very limited financial impact.'

Asset under management (AUM) during the year rose by 4%, or €29 billion, to €746 billion in 2017, which helped revenues increase 6% to €1.28 billion. Underlying earnings increased by 14.2% to €257 million.

Excluding JVs, Axa IM’s net new money inflows continue to show ‘strong momentum’ from third party clients, with net inflows of €9.3 billion last year.

Andrea added that since 2015, Axa IM has had more than €100 billon of net inflows.

‘2017 was a particularly strong year for us in terms of successes for our institutional business, leveraging our close relationship and the work we do for the Axa Group, while we also made advances in the retail space,’ Rossi said.

‘In 2018, we will continue to focus on our strengths to accelerate our development through continued product innovation to match the evolving needs of our clients.

‘Our expertise and capabilities as an active manager provide us with a crucial advantage in navigating today’s challenging markets and capturing the evolving opportunities driven by global megatrends.’

 

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