Annual report 2005 - Dexia.com

Annual Report 2005ActivityAsset management achieved a strong year in2005. Volumes reached EUR 90.6 billion atyear-end, up 26.8% (or EUR +19.1 billion)on the previous year, under the effect of asignificant organic growth (EUR +12.1 billion)but also of a positive market effect(EUR +7.0 billion). All types of managementexperienced a very strong increase in 2005:notably the mutual funds category increasedby 30.3% in one year, due to the resumedappetite for such products, on the part of bothretail and institutional clients. The increasein volumes of discretionary private mandateswas 21.5%, and institutional mandates wentup 18.6%. In this latter category, the growthof new business stemmed from differentsources: insurance activities within Dexia; newmandates from pension funds; new mandatesfrom local and government authorities;mandates from financial institutions. Of note,an important flow of business was won on theAustralian market.Concerning the productivity ratios of thecompany, already very good in 2004, theyhave further improved in 2005, with costsrepresenting only twelve basis points of assetsunder management. The performance ofDexia Asset Management’s funds also stoodvery well: Standard & Poor’s ranking of sectorpeer group placed 72% of its funds in the firsttwo quartiles (by volume) in 2005, and 79%in the last three years.Fund Administration activity remained verystrong.• Total assets under custody amounted toEUR 409.0 billion at year-end 2005, up 17.5%on one year earlier. The mandates to DexiaFund Services stood at EUR 255.1 billion,up 35.2% over the year thanks to the marketeffect, but above all to the mandates wonthroughout the year notably in Luxembourg.• The central administration activity hasexperienced a growth of 5.6% over 2004 interms of number of valuations. The assets inthis activity grew 28.4% to EUR 241.7 billionin 2005.• The transfer agent activity remained almostunchanged over the year.In 2005, Dexia and Royal Bank of Canadaannounced the creation of a joint venture(effective as of 2006). The new company,RBC Dexia Investor Services, ranks amongthe world’s top 10 global custodians withassets under custody (includes assets ofRoyal Bank of Canada as of October 31,2005 and Dexia as of September 30, 2005)of approximately EUR 1,650 billion. RBCDexia Investor Services offers an integratedrange of products, including global custody,fund and pension administration, securitieslending, shareholder services, analytics andother related services, to institutional investorsworldwide. This announcement has been verywell received by clients.ASSETS MANAGED BY TYPE OF MANAGEMENT(In billions of EUR)2004 2005 VariationMutual funds 49.3 64.2 +30.3%Private mandates 3.8 4.6 +21.5%Institutional mandates 18.4 21.8 +18.6%Total 71.5 90.6 +26.8%85