Le mie ricette per la real estate community“2023 has been another challenging year for asset managers and investors, with geopolitical events and inflation running high. Despite these challenges, we have demonstrated the resilience and the relevance of our business model to navigate all market conditions.” “Our teams remained dedicated to working closely with our clients, delivering the strategies and solutions to meet their investment needs, fuelling strong sales momentum with positive inflows from third party clients mainly generated by AXA IM Alts and AXA IM Core,” said Marco Morelli, Executive Chairman of AXA IM. “We’ve reported on the first edition of our AXA IM for Progress Monitor, which transparently tracks progress towards our goal of becoming a net zero business and investor by 2050. Metrics show we are making progress towards net zero, through decarbonisation actions in our portfolios and as a business. Notable highlights include increased capital committed to natural capital solutions as well as robust engagement activities with investee companies. We remain determined to take action and lead the green transition for a more sustainable, fairer, and inclusive future.” “We have now completed the full consolidation of all AXA Group’s asset management activities under one roof to capitalise on their combined strengths in order to drive growth, and to offer new investment opportunities to our clients. We now have four business units, AXA IM Alts, AXA IM Core, AXA IM Prime and AXA IM Select, each with distinct propositions and dedicated expertise.” “Our convictions are steadfast, and we must continue to generate sustainable growth and adapt to evolving market conditions, so that we can innovate and deliver value for our clients. By playing to our strengths, we are ready to enter our next strategic phase.” Full-year 2023 key highlightsAll figures are sourced by AXA IM as of end 2023, unless otherwise specified.2022 figures have been restated to include the contribution of AXA IM Select for the comparison with 2023. Net flows amounted to €-11 billion, comprising of:€+9 billion from third-party clients, with positive inflows mainly coming from institutional fixed income and alternative clients.€-15 billion from AXA insurance companies, coming from outflows in savings products.€-5 billion from joint ventures in Asia, driven by outflows in China as Residential Mortgage Backed Securities (RMBS) as a result of lower interest rates which triggered termination of contracts. Assets under management (AUM) amounted to €844 billion, down 1 billion compared to the end of 2022, reflecting outflows as well as negative FX effect, despite positive market effect linked to the good momentum on financial markets at the end of the year.Net Revenues are down 2% at €1,516 million[1], driven by a decrease in recurring fees due to a lower asset base as a result of adverse financial markets, as well as lower transaction fees, partly offset by an increase in performance fees. Underlying earnings are down 10% at €359 million[2], mainly as a result of lower revenues. On a reported basis, underlying earnings are up 3% vs. 2022.The underlying cost income ratio stands at 71.7%, as a result of lower revenues and higher costs, partly offset by cost containment measures. 2023, the year of Private Debt & Alternative Credit for AXA IM AltsAXA IM Alts brings together real estate, infrastructure, alternative credit and natural capital & impact investments expertises of AXA IM.The Alternative business unit recorded €4 billion of net new money[3] from third-party clients, with good momentum in private debt and alternative credit.Assets under management stand at €183 billion.Revenues stand at €626 million. In a year that has seen a further slowdown in capital raising and investment volume overall, AXA IM Alts has managed to capitalise on its strength and extensive product offering to swiftly adjust to a challenging market environment.As an illustration of this, 83% of the capital raised from third party clients was directed towards private debt & alternative credit (vs 49% in 2022), reflecting both the renewed appetite from client for those strategies in a higher interest rate environment and the strength and suitability of AXA IM Alts’ offering in this space. In terms of asset class, 44% of total capital raised was in real estate, largely in Commercial Real Estate debt, a segment where AXA IM Alts has an established leadership position with its €25 billion platform, followed by infrastructure representing 27% of total, a fast growing segment of the business unit and one of the most in demand asset class. With 26% of total capital raised, alternative credit strategies provided strong contributions in 2023, with a noticeably one from Significant Risk Transfer strategies, an asset class moving from tactical play to become part of a strategic asset allocation and from which AXA IM Alts benefits from a 20-year track record. In 2023, 41% of total capital was raised outside of Europe, primarily from Asia Pacific and North America, reflecting AXA IM Alts’ position as global leader in alternatives investments. |
Source : AXA Investment Managers