consolidated annual report - Gruppo Banca Sella

Net collected assets showed a positive balance of €
6,9 million over 2003. Net interest and other income,
amounting to € 3,6 million, recorded an increase of 19%
with respect to the previous year, thanks also to net
management fees (€ 3,1 million), which increased by
17% over 2003.
Structural costs, standing at € 2,1 million, showed
an increase of 9% over 2003, due both to an increase of
staff expenses (+10%), as a consequence of higher variable
components granted to staff following the achievement
of fixed objectives, and of other administrative
expenses (+6%), due to higher costs for information
providers.
Cost to income ratio recorded a remarkable improvement,
passing from 68,1% of 2003 to 62,6% of 2004.
Net profit for 2004 amounted to € 750.000, increasing
by 37% with respect to 2003 (in which it stood at €
549.000).
Gestnord Fondi SGR S.p.A.
The Company, based in Milan, has been operating
in the industry of mutual funds since 1983. Since 1999
it widened its activity to individual asset management
and supplementary allowance products. The company at
the moment manages 32 open-end mutual funds, a fund
of funds with 7 sections, a closed-end fund and a pension
fund with 5 sections, it also manages by proxy two
sicavs under Luxembourg law and some Monegasque
funds. For the distribution of its products the Company
avails itself of banks and brokerage companies both of
the Group and outside the Group.
Net managed assets as at 31 December 2004 reached
€ 3.250,7 million (excluding duplications), showing a
decrease of 4% with respect to 2003. At year end assets
included 72,9% of bond funds, 8,9% of balanced and
flexible funds and 18,2% of common stock funds. The
market share of Gestnord Fondi passed from 0,658% of
2003 to 0,633% as at end 2004.
Net inflows (excluding duplications) was negative
for an amount of € 199,9 million, showing a reversal of
trend with respect to the previous year, in which it had
recorded a positive balance of € 55,9 million.
Net interest and other income, amounting to € 7,7
million, recorded a decrease of 6,1% with respect to the
previous year, mainly due to the decrease (-3,6%) of net
management fees, following both the reduction of managed
assets and the choice of customers who favoured
cash and bond related products, which bear lower revenues
than stock related products.
During the year the careful policy of cost reduction
went on, leading to a 10% decrease of other administrative
expenses (amounting to € 2,7 million), while staff
expenses, at € 3,3 million, were substantially stable.
Net profit for 2004 amounted to € 1,1 million,
with respect to € 924.000 of 2003, mainly thanks to
the above mentioned costs reduction, to the decrease
of write-downs (-34,1%), the decrease of extraordinary
charges (-64,6%) and to write-ups to the participation in
Sella Capital Markets (in liquidation).
During the year the first step of the review of the
range of products was completed, by the merging of 2
mutual funds and of a fund of funds section into other
similar funds. This rationalization will continue during
2005 through the further merge of some managed
products, even though maintaining a range of products
suitable to the various needs of customers. The ratings
assigned by Moody’s to 6 among the main bond related
funds was again confirmed.
Gestnord Intermediazione SIM S.p.A.
The Company, based in Turin, operates in the industry
of securities brokerage.
The trading activity on third parties’ account involves
both institutional and retail customers: to the
latter the company also offers private banking services
both through its “branches” located all over Italy and
with the support of 175 financial promoters, distributed
all over Italy and organized in 13 financial sales offices.
Total managed assets as at 31 December 2004
amounted to € 2.048,4 million, of which € 1.801,2 million
from retail customers, showing an increase of 15,3%
with respect to 2003, and € 247,2 million from institutional
customers.
Volumes traded on the Italian Telematic Stock Mar-
Consolidated annual report 2004 - 199