GLOBAL - Société Générale Asset Management (SG AM) recorded net inflows of e12.4bn in the first quarter of 2006, with assets under management reaching e338.8bn.
Assets under management were up from e275.1bn in Q1 2005, while net income from asset management was e91m - up 21% on the previous year’s quarter.
The asset management division, which falls within SG AM’s Global Investment Management Services arm, attributed the performance largely to strong inflows into alternative investment products. Alternative investment products accounted for 40% of total inflows in the quarter and make up e50.6bn for SGAM Group as a whole.
Global Investment Management and Services comprises asset management, private banking, Société Générale Securities Services and online savings and is one of the group’s main development priorities.
Total net income for Global Investment Management and Services was e164m, up 29.1% on the same quarter last year.
Commenting on the results, Société Générale said in a statement: “The first quarter of 2006 was marked by an economic and financial environment which was very favourable for the Group’s businesses: the United States saw sustained levels of economic activity and the European economy recovered; the dollar was relatively stable, but oil prices reached record highs; long-term interest rates began to rise in Europe; equity markets were bullish with a high volume of financial transactions by European corporations, notably in the equity capital markets. The credit risk environment remained very favourable.
“Against this backdrop, the Group delivered an excellent performance. Gross operating income stood at e2.36bn for the quarter, up 29.6% on Q1 2005, while net income rose by 20% to e1.47bn.”
By Kristen Paech
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