AMWatch

Nordea Asset Management operating profit up 17 percent in 2017

While Nordea's financial results for the fourth quarter of 2017 came in well below analyst' expectations, Nordea Asset Management increased operating profit, and contributed EUR 703 million to group operating profit in 2017. However, assets under management fell in the fourth quarter.

Nordea Asset Management appointed Nils Bolmstrand as new Head of AM at the very end of 2016. Before him Christian Hyldahl was Head of AM

At the presentation of Nordeas accounts for 2017, Chief Executive Casper von Koskull highlighted the investment returns at Nordea Asset Management, noting that 92 percent of composites outperformed their benchmarks over the past three yeras.

Focus in 2017 has been on maintaining the current asset base.

Nordea Asset Management saw a net outflow in retail, private banking and life assets under management of EUR 0.8 billion in 2017, while there was a net inflow from external investors and third-party distributors of EUR 0.5 billion.

The net inflow in institutional clients mainly came from Denmark and the UK and was, according to Nordea, "satisfactory". Nordea Asset Management had a negative flow of EUR 0.7 billion in the fourth quarter. Nordea says that this was due to the soft close of the Stable Return Fond and resulted in a net outflow of EUR 0.5 billion.

Income from Asset Management activities in the fourth quarter was EUR 269 million, up 16 percent from the previous quarter and up 11 percent from the same quarter last year. Performance related income was EUR 21 million. The increase was mainly the result of an increase in average Assets under management.

Operating profit at the unit was EUR 198 million, up 20 percent from the previous quarter and up 14 percent from the same quarter last year, the group writes. For the full year, operating profit increased 17 percent to EUR 703 million.

The continued growth necessitated employing more full-time staff in asset management: the number hit 742, up 12 percent from the previous year.

Nordea Asset Management had around EUR 330 billion worth of Assets under Management at the end of the fourth quarter. Of which EUR 99 billion in Private Banking, EUR 96 billion in institutional mandates, EUR 61.5 billon in Nordic Retail Funds and finally EUR 74 billion n life and pension assets.

 

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