GLOBAL – AXA’s asset management earnings, adjusted for currency effects, rose 38% to 136 million euros in the first half of 2004.

Its Alliance Capital arm’s earnings rose 25% to 85 million euros, while AXA Investment Managers was up 68% at 51 million euros.

AXA’s total assets under management at the end of June were 712 billion euros – an increase of seven percent at current exchange rates from the end of 2003.

“This increase was primarily driven by AXA Investment Managers, which leveraged their multi-specialist structure strategy,” AXA said. AXA IM had record net inflows of 9.6 billion euros, it added.

“I am delighted that AXA IM’s first-half profits are so strong,” said AXA IM chief executive Nicolas Moreau. “Our multi-specialist structure has proved successful in generating excess returns for our clients. Not only is it benefiting existing clients, it is also proving a winning formula in attracting new business.”

AXA’s total asset management revenues were up 19.1% to 1.5 billion euros. Alliance Capital’s revenues increased16.4% to 1.1 billion euros while AXA IM’s revenues rose 29.6% to 368 million euros.

Moreau added: “The new business pipeline for the latter half of 2004 is substantial. During the second half of 2004, we will continue to leverage our strengths for both new and existing clients and will also focus on broadening our geographical reach.”

Overall, AXA reported first-half underlying earnings up 32% at 1.4 billion euros. “The very strong earning momentum achieved in the first half of 2004 is the result of our efforts to improve our operating performance,” said AXA Group chief executive Henri de Castries.

“These results, strong in all business segments, highlighted the benefit of our unique business focus on Financial Protection, combined with a good geographical diversification.

“We will continue to harvest increasing benefits of our strong and diversified global platform.”