Dexia sees massive drop in sustainable fund salesJune 2010
Socially responsible investment sales at Dexia Asset Management dropped 120 per cent last year, with assets under management falling by €99million (£85m, $122m).
The Belgian group, which has one of the largest SRI teams in the world, saw increases in funds managed for institutional investors wiped out by withdrawals from private clients. It also closed two of its 24 SRI funds over the course of 2009.
The €99m SRI asset drop for last year compares to a rise of €496m in 2008, according to the group’s latest sustainable development performance indicators report. Dexia AM’s share of the European SRI market has declined to 5.6 per cent – down from a peak of eight per cent in 2006.
The group has also seen its market share in renewable energy investment slump dramatically. It was down 41 per cent from 2008, falling to €461m from a previous high of €1.4billion in 2007.
Earlier this year the French FRR pension fund fired Dexia AM from a €100m SRI mandate three years into an expected five-year mandate following what it described as poor performance.
Before this, governments in Belgium, France and Luxembourg were forced to bail out Dexia, the fund manager’s parent bank, as a result of the financial crisis, injecting €6.4bn into its coffers to keep it afloat.
Sustainable investment does now account for a greater share of Dexia’s total funds business, however, with the SRI team making up almost ten per cent of the total funds managed by the group’s asset management arm.
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