FRANCE - Société Générale has posted its third quarter results, showing sub-prime related losses and poor performance as a result of the turbulent summer in the asset management division, but an over all increase in assets under management.
Third quarter outflows were €12.6bn (US$18.5bn) against inflows of €5.6bn ($8.2bn) for the same period last year. The majority of these outflows (€7.4bn, $10.9bn) were incurred through withdrawals from the dynamic money market funds.
A further €4.2bn ($6.2bn) of outflows were caused by the termination of three contractualised debt obligations (CDOs).
Gross operating income fell slightly under 45% against the same period last year, while net income fell by almost half (47.8%) to €40m ($58.8m)
Assets under management rose €29.6bn ($43.6bn) over last year, to €374.6bn ($551bn).
A number of pension schemes have been prompted to lock in gains with a move into bonds after the estimated deficit across FTSE 100 DB pension schemes improved by £36bn, over the 12 months ending 30 June last year, JLT Employment Benefits found.
HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.