Bond outflows drag BNP Paribas down

Arrow down1The asset management business of BNP Paribas has seen assets under management (AUM) decline by €40 billion in the 12 months to the end of September and is the only segment within the French bank’s investment solutions division to have had asset outflows.

AUM fell from €408 billion at September 30, 2012, to €368 billion at the same date this year.

In the third quarter, the outflows were due mainly to investors exiting bond funds, BNP Paribas says in its Q3 results.

The decline also dragged back the total AUM for the broader investment solutions division despite the other four units that sit alongside asset management – which are wealth management, real estate services, insurance and personal investors – increasing assets, except in one case (real estate services) where assets stood still.

Total AUM for investment solutions at the end of Q3 was €874 billion. This is an increase since June owing to inflows and positive equity market performance, but is a decline from the €886 billion figure of Q3 last year.

In its third quarter results, BNP Paribas – which runs BNP Paribas Investment Partners (BNPPIP) – reports that its asset management business saw net asset outflows of €5.6 billion during the quarter. This is lower than in Q3 last year when asset management saw net outflows of €9.2 billion.

Flows into wealth management in Q3 this year were €2.1 billion – the highest of all investment solutions businesses and were down to “domestic markets” and Asia.

According to its UK website, BNPPIP had €478 billion of assets under management and under advice at June 30 this year.

In July, BNP Paribas announced it was on a €40 billion asset raising push for its asset management business, creating a loans capability and improving its European equities offering.

The bank said it aims to increase asset management revenues by 10% by 2016.

©2013 funds europe