LONDON (AFX) - French financial group Societe Generale's asset management arm posted a 21.3 pct growth in net income in the first quarter of the year, thanks to strong inflows into alternative investments.
Societe Generale Asset Management's net income rose to 91 mln eur in the three months to end-March from the 75 mln eur posted in the same period last year.
Net inflows for the division trebled to 12.4 bln eur, with alternative products, such as hedge funds, private equity, real estate, structured products and mezzanine funds, accounting for 40 pct of the new money.
Assets under management at the end of March amounted to 338.8 bln eur, up from 275.1 bln eur on year earlier. Expenses were also up 20 pct, rising to 193 mlon eur, partly due to higher performance-linked pay.
'This reasserts the group's position at the fourth largest bank-owned assets manager in the euro zone,' the group said in a statement.
Bonds and money market investments still account for the majority of assets under management, with a 44 pct share, but down from 47 pct at March 2005.
Equities have retained a 41 pct share. while alternative investments have gained three pct points, accounting for 15 pct of investments.
Institutional investors represent 54 pct of the division's clients. By Cecilia Valente: 44-(0)207 422 4925; cecilia.valente@afxnews.com cv/jdc/lam COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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