FRANCE - French bank Credit Agricole's asset management division saw assets under management rise to €583bn in the first six months of 2007, of which Crédit Agricole Asset Management (CAAM) accounted for €565.7bn.

"Excluding Italy, assets under management (AUM) moved up 14.8% year-on year (or 14.3% on an unchanged consolidation basis) to €526.7bn at  June 30," the bank announced in its half year results today.

In March, the group decided to unwind the CAAM Società di Gestione del Risparmio (SGR) joint venture, subsequently reorganising its Italian subsidiary.

The group now says it plans to offer a more competitive product range after the reorganisation of its Italian subsidiary, while "continuing to promote its pension fund range following the pension reform initiated in Italy".

Other international subsidiaries accounted for approximately 22% of net new money and CAAM claims its €36.3bn increase over the first half was driven by a favourable market impact and "solid business momentum" over the period.

The division saw net new inflows of €18.7bn, primarily into specialised and structured funds as well as money-market and bond funds.

"In asset management, insurance and private banking, CAAM broadened its international reach with the opening of two sales offices in Sydney and Beijing, and a branch in Frankfurt."

According to the bank, the US subprime loan crisis has had a limited impact on its operations, despite hits in asset management and corporate and investment banking.
 
"Crédit Agricole group's asset management business line does not directly hold any US subprime loan. Its only exposures, which are very limited (€100m), result from multimanagement business," the group said.
 
Since the inception of the US mortgage turmoil in February, the group's corporate and investment banking division, Calyon, has not initiated any new structuring transactions.

"In the second quarter, difficulties encountered in these businesses were more than offset by the performance of the other capital market activities desks," the group added.