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Nordea loses €1.3bn in institutional assets

SWEDEN – Nordea says it lost a total of €1.3bn of institutional assets under management in the fourth quarter of 2004 – hit by industry consolidation.

“In institutional asset management, industry consolidation resulted in clients withdrawing mandates of €0.9bn,” Nordea said in its year-end report. “Total net outflow was €1.3bn.” It did not name the clients who pulled assets.

Institutional assets under management at the end of the fourth quarter stood at €21.8bn.

The institutional losses were offset by inflows into retail, private banking, wealth management and life & pensions. Its total assets under management rose by €4.9bn to €130.6bn, a record.

The asset mix at the end of the fourth quarter was 34% equity and 66% fixed income and money market products.

Income from asset management rose by 14% to €151m. The full-year investment return was 8.4%.

Overall, Nordea’s net profit in 2004 rose 28% to €1.9bn. “It is very encouraging that we continue to deliver strong results quarter after quarter,” said president and chief executive Lars Nordström.

Earlier this week Handelsbanken said its asset management arm saw its assets under management rise by SEK30bn to SEK283bn.

It added that Handelsbanken Liv returned 6.83% in 2004. The portfolio shifted towards equities and away from bonds. Equities rose to 28% from 17% in 2003, while fixed income assets fell to 64% from 74%.

SPP’s equities exposure rose to 17% from eight percent while fixed income fell to 80% from 88%.

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