AXA IM revenues 6% up on fees boost

Axa Investment Management has seen revenues increase by 6% last year on the back of higher performance fees.

According the group’s annual results, revenues rose to €1,151 million (around £965 million), which Axa attributed to higher performance fees as well as increased real estate transaction fees and a better product mix.

The group also saw a drop-off in non-staff costs, compared with 2010, with operating expenses at €670 million (£561 million).

Axa IM said this helped boost its operating profit by 11% to €222 (£186 million) last year.

Assets under management sat at €512 billion at the end of December, reducing by 0.8% compared with the year before, due to adverse market conditions and a change in the scope of assets managed for a key third party client, based on the sale of the Axa UK Life business.

However, Axa IM saw net new money at negative €1.2 billion at the end of last year, despite spending most of 2011 in positive territory.

This compares with net new money of negative €20.2 billion in 2010 and €18.5 billion in 2009.

While Axa Rosenberg saw €5 billion in outflows, and the unprofitable employee shareholder plan cost €2 billion, net inflows amounted to €6 billion, mainly driven by strong flows into Axa IM’s joins venture businesses in Asia.

Dominique Carrel-Billiard, CEO of the AXA IM Group, said:  ‘The investment performance generated for clients has continued to improve and demonstrates the value of our active management approach in difficult market conditions.

He added: ‘Although 2012 will continue to be challenging for the financial sector, as a long term investor dedicated to active management, AXA IM is ideally placed to capture the opportunities presented to investors by evolving markets. We will continue to foster partnerships based on trust and transparency with our clients and capitalise on our solutions approach to address the ever growing and complex investment needs of clients globally.’