Corrected: SocGen investment mgmt recovery
FRANCE – (Corrects to clarify that TCW has not closed, paragraph 6) Societe Generale has reported continued recovery for its investment management business for the third quarter, with net inflows of 1.9 billion euros.
By the end of the third quarter, Societe Generale’s assets under management stood at 281.5 billion euros, up nine billion euros since the end of the second quarter.
The global investment management business (asset management and private banking) reported 67 million euros in net income in the third quarter, up 29% on the third quarter of 2002, and up from 53 million euros at the end of June.
The asset management business unit accounted for 47 million euros of the net income. New net inflows of 1.9 billion euros were registered over the quarter - predominantly in alternative investment and equity products.
“This inflow of new money coupled with firmer markets, led to an improvement in the product mix, with a shift towards more value-added instruments,” said SocGen.
During the third quarter the closure of “low margin” activities at SG Asset Management’s American subsidiary, TCW, resulted in an outflow of 4.6 billion euros. The unit manages 82.6 billion dollars in assets, i.e. up from the 80 billion dollars under management when it was acquired in July 2001.
Despite continued growth in the investment management business, the Group’s net income fell to 670 million euros from 695 million euros over the quarter. Over the first nine months of 2003, however, net income amounted to 1.848 billion euros, up 79% on the same period in 2002.