“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.”
“Thanks to the diversification of our asset classes, segments and geographies, we have recorded stable revenues. Our assets under management have progressed well and reached a record high of €801 billion. We have seen positive flows of €13 billion, with third-party clients having invested mostly in our fixed income and alternatives products.” said Gérald Harlin, Executive Chairman of AXA IM.
“The 2020s are likely to be the decade of transition, and as a responsible active asset manager, we are committed to playing a central role in pressing for change to benefit our clients and the wider society. We strongly believe that we can make an impact, not only through our investments but also through our voting and engagement initiatives with the companies in which we invest, on a range of issues including governance, climate change, biodiversity and gender diversity.
Finally, impact can also be achieved through thought leadership and innovation. Our call for, and subsequent involvement in the launch a new transition bonds asset class, demonstrated how partnering with AXA and our peers has proven efficient in contributing to the transition towards a low-carbon and resilient economy.”
We are now preparing the next phase of our development focusing on profitable growth, becoming an even more responsible company and making sure we always put clients first.” added Gérald Harlin.
Full-year 2019 key highlights
All figures are as of end 2019, unless otherwise specified.
Net inflows amounted to €13 billion, including third-party net flows of +€4 billion. Third-party flows derived largely from flows into Fixed Income and Alternatives strategies, while AXA IM’s Chinese joint-venture recorded outflows, as a consequence of the application of new laws, similarly to 2018.
Assets under management amounted to €801 billion, up €71 billion compared to the end of 2018, reflecting positive market effects and net inflows.
Revenues were stable at €1,249 million, mainly driven by higher management fees but notably offset by lower performance fees reflecting the non-repeat of 2018 exceptional levels.
Underlying earnings were down 3% to €264 million, due to a higher average tax rate, partly offset by lower expenses.
As a responsible active asset manager, AXA IM continues to drive change
AXA IM was among the first asset managers to commit to push for progress through investment choices with a view to drive change for the benefit of clients and society. 2019 has been a year of acceleration with a deeper commitment to ESG integration, impact strategies and game-changing industry initiatives.
AXA IM’s ESG product offering, as well as the impact range, were further enhanced. Indeed, the year saw the launch of the listed impact strategy, Clean Economy, as well as the third and fourth private market strategies – respectively focusing on climate & biodiversity and healthcare & financial inclusion in emerging countries. Moreover, AXA IM now has a total of 24 SRI labelled strategies in France and Belgium.
Finally, following the call to action and establishment of the transition bonds guidelines in June 2019, AXA IM worked together with AXA Group on the issuance of a €100 million transition bond by Credit Agricole CIB – the first to be issued under the guidelines. AXA IM also took a leading role in the Climate Transition Finance Working Group created under the auspices of the International Capital Market Association’s Green and Social Bond Principles. This illustrates AXA IM’s focus on engagement with policy-makers, industry groups and companies to help sustain the health of financial markets and ensure the efficient allocation of capital.
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