Fortis Investments hit by institutional outflows
BELGIUM – Asset management profits and revenues at Fortis fell in the first half of this year – hit by net outflows of institutional clients.
Fortis said that net operating profit at its asset-management arm, now globally rebranded as Fortis Investments, was 24 million euros, a 24% drop on 2002. Revenues at the arm declined by eight percent to 105 billion euros.
Assets under management rose to 76.2 billion euros, up 3.5% since the end of the first quarter and 4.7% up on the end of 2002.
“Net new cash was a negative 950 million euros, with inflows on the retail side offset by the net outflows of institutional clients,” the bank said.
It said the Fortis Investments name was adopted globally on July 1, with its US subsidiary Harbor Capital Management being most directly affected. “This harmonization will allow more efficient and comprehensive marketing and development of our business worldwide.”
It added that Fortis Investments’ flagship Fortis L Fund is now authorized for sale in a total of nine European countries.
Overall, Fortis reported a net profit of 671 million euros “in a difficult economic environment”. It also announced 500 more job cuts this year.