AXA IM assets hit £670bn amid strong 2019 inflows

Anna Fedorova
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AXA IM saw strong flows in 2019
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AXA IM saw strong flows in 2019

AXA Investment Managers has reported net inflows of €13bn (£10.9bn) during 2019, including third-party net flows (excluding joint ventures) of €4bn, with most of this going into its fixed income and alternatives strategies.

As a result of these inflows and strong market performance, the assets under management (AUM) at the business rose €71bn during the year to hit €801bn (£670bn).

Revenues remained stable at nearly €1.3bn, driven by higher management fees but offset by lower performance fees compared to 2018, while underlying earnings saw a 3% decline to €264m due to a higher average tax rate.

The alternatives segment of the business saw particularly strong demand, with AUM rising 13% to €137bn, driven by "appetite from institutional clients".

The year saw the AXA IM - Real Assets flagship pan-European core strategy rise to €4bn in AUM, while the Structured Finance business also saw strong inflows.

Gérald Harlin, executive chairman of AXA IM, said: "AXA IM has demonstrated resilience in 2019 despite the industry navigating a challenging low interest rate environment.

"In this context, having a strong and leading alternatives offering is key to bringing value to our clients, and we have further strengthened our expertise in this space."

Elsewhere, fixed income also saw particularly strong performance across the board, with inflows mainly driven by the Buy and Maintain business in the UK for third-party institutional clients and the active fixed income business in its inflation an credit mandates.

Additionally, AXA IM has been making progress in the area of ESG, launching a new Clean Economy strategy in 2019 to take the total number of SRI labelled strategies listed in France and Belgium to 24.

The year also saw the group issue a €100m transition bond together with the AXA Group and Credit Agricole CIB under the newly established transition bond guidelines.