Italy’s Eurizon Capital, which has launched 69 funds this year, says fund flows and operating efficiencies have helped it achieve “strong growth” in the past nine months.
The firm, which reported its financial results yesterday, said consolidated net income grew 25% in the first nine months of 2017 to €365.5 million.
Eurizon has previously claimed Europe’s funds crown when flows totaled €18 billion in 2016.
This year, net inflows have exceeded €15 billion over the first nine months and assets under management reached €307.7 billion at September 30, a 6% increase since the start of the year.
Fee and commission income stood at €496.7 million, a 22% increase over the nine months for last year.
The firm, owned by Intesa Sanpaolo bank, continued to see success in Italy’s relatively new market in tax-exempt funds, known as Piani Individuali di Risparmio (PIR) funds, with €1.4 billion from retail and €200 million from institutions.
This year Eurizon has launched 61 Italian funds and eight Luxembourg sub-funds, for institutional and retail customers.
In the third quarter, the greatest inflows were into “flexible” funds, totalling almost €2 billion, and bond funds, which collected €1.14 billion. From the beginning of the year, the inflows of these two types of funds were €5.7 billion and €6.8 billion, respectively.
Eurizon expanded it product range in the third quarter with products for retail customers focusing on the “requalification of liquidity” and the quest for yield. In its private banking division it launched a fund that gradually increases exposure to equities over the first two years and aims for a moderate capital growth through diversification.
For institutions it launched a syndicated loans product to support acquisitions by private equity funds.
Tommaso Corcos, CEO of Eurizon, said: “We are drawing close to the end of a year full of satisfaction and innovation, especially with the launch of the PIRs.
“The results achieved are the starting base for the objectives that we are defining for the group`s next business plan.”
©2017 funds europe