‘Positive vibes’ to Dexia/RBC JV plan
Dexia says its clients have responded well to its planned custody tie-up with Royal Bank of Canada.
Dexia and RBC agreed to combine their institutional investor services business into an equally owned joint venture called RBC Dexia Investor Services in June this year.
“The announcement has been very well received by the clientele,” Dexia says. It adds that assets under management have risen 22.3% in the year to the end of June to €81.4bn.
“This evolution is the result of a significant organic growth this quarter (€3.4bn) and also of a positive market effect (€2.3bn),” Dexia said in its earnings release.
“Net inflows come mainly from mutual funds, both institutional clients and retail clients showing appetite for products such as bonds or alternative funds.”
Assets under custody amount to €376.4bn. But transfer agency activity slipped 0.7% in the second quarter.
Net income at the investment management and insurance services unit fell 11.9% to €54m from €61m a year before. It said the negative movement “stems only” from a change in the fee structure of asset management. Overall, Dexia’s second-quarter net income rose 4.4% to €508m.