Annual report 2009 - Dexia.com

Activity and results of the business lines // Asset Management and ServicesAsset Management and ServicesManagement reportConsolidatedfinancial statementsIn 2009, the business segmentation was adapted to Dexia’snew profile and strategic direction. Asset Management andServices includes Dexia’s activities in the field of Asset Management,Investor Services and Insurance activities.ActivityAsset ManagementIn 2009, Dexia Asset Management aligned itself to the postcrisisasset management industry environment. Dexia AssetManagement worked to further enhance its commercialeffectiveness by putting the client at the heart of its activitiesand continued to develop synergies and efficiency-gainswithin the Dexia Group. Dexia Asset Management remains arobust asset manager. It relies on its four production centresin Brussels, Luxembourg, Paris and Sydney combined with alocal sales presence in several European countries, Australia,the Middle East and Canada.Dexia Asset Management has a long tradition and proventrack record in fixed income, equity management and assetallocation. The company also holds strong positions in alternativeinvestment management as well as in socially responsibleinvestment (SRI) management.The performance of the funds managed by Dexia Asset Managementwas again confirmed in 2009. Almost 80% of itstraditional funds have 3, 4 and 5 Morningstar ratings for allasset classes. In terms of awards, Dexia Asset Managementwon 6 awards as asset manager and 25 awards for specificfunds in 2009.Assets under management increased by EUR 3.1 billion (or+4%) in 2009 and reached EUR 82.4 billion at the end of theyear as positive market effects more than offset outflows.In the uncertain economic and financial environment,retail clients continued to be risk averse and were focusedon balance-sheet products (deposits). This translated intoEUR 7.9 billion of net outflows in retail investment funds andprivate mandates. The positive market effect amounted toEUR 3.3 billion, As a result, total assets managed in retailfunds and private mandates were at EUR 27.6 billion at theend of the year.Institutional investment funds and mandates increased byEUR 7.7 billion (or +16%) from the beginning of the year, toEUR 54.8 billion. This was explained by a EUR 6.2 billion positivemarket effect and EUR 1.5 billion net new cash.Dexia Asset Management’s client mix is well balanced: as at31 December 2009 institutional assets represented two-thirdsof total assets under management, the remaining one thirdconsisting of assets from retail and private banking clients.Assets under management remained well diversified betweenasset classes: 20% in equity, 32% in fixed income funds,14% in money market, 27% in global balanced, 7% in alternativeand structured assets. SRI solutions represented 22%of the total assets.Annual financial statementsAdditional informationASSETS UNDER MANAGEMENT (1)(in billions of EUR) 31/12/08 31/12/09 VariationTOTAL 79.3 82.4 +4.0%By type of managementMutual funds 44.8 42.6 -4.8%Institutional funds 15.9 18.6 +17.4%Retail funds 28.9 24.0 -17.0%Private mandates 3.3 3.6 +9.9%Institutional mandates 31.3 36.2 +15.9%By asset classEquity 10.6 16.2 +52.7%Fixed income 24.4 26.7 +9.3%Global balanced 26.4 22.3 -15.6%Money market 12.2 11.8 -3.2%Alternative and structured assets 5.7 5.5 -3.2%(1) Assets under the management of Dexia Asset Management. Assets counted twice included.80Dexia Annual report 2009