EUROPE – A “strong increase” in pension fund inflows helped Dexia’s institutional assets under management to rise by 12.3%, or €2.7bn, in the first quarter.

Total assets under management rose 7.3% in the three months to the end of March to €97.2bn – up 28.4% on the year-before figure.

“This evolution is the result of a significant organic growth in the first quarter of 2006 (+€5.4bn) and also of a positive market effect (+€1.2bn),” Dexia said in its latest earnings report.

“The growth over 12 months has been driven by a strong new assets inflow of €14.5bn.

“Net inflows came from institutional mandates (+12.3% or €2.7bn) with a strong increase from the pension schemes and related entities, and from insurance companies.” It did not name the clients.

Dexia added: “As of March 31, 2006, the total assets under management distributed by the institutional sales teams amounted to €38.2bn.”

More than half of its net new cash (€2.8bn) came from France and more than 20% from new entities in Italy, Spain and Portugal.

Total assets under administration at its RBC Dexia Investor Services joint venture rose 19% to $1,978bn – “thanks mainly to the strong organic growth and also to the appreciation of the Canadian dollar”.