BayernInvest, the asset manager owned by Bayerische Landesbank, said assets under management continued to grow in the first quarter after an increase of 9.6 percent last year helped by special funds inflows.
Assets under management rose to about 38 billion euros ($50 billion) by the end of March from 36.3 billion euros at the end of last year with the institutional special funds business being a “substantial driver,” the Munich-based company said in a statement today.
“Our growth is continuing at a constant pace, helped by a favorable market development,” BayernInvest managing director Reinhard Moll told journalists in Munich today. “Margins in the asset management market are declining, so this has to be compensated by a certain growth in volume.”
BayernInvest, which is fully owned by BayernLB, Germany’s second-biggest state-owned bank, has increased its assets under management from 24 billion euros in 2007 and employs about 150 people in Munich. BayernLB needed 10 billion euros of capital amid the global financial crisis from the German State of Bavaria. Following the bailout, the European Commission, the European Union’s executive arm in Brussels, is examining BayernLB’s restructuring measures.
BayernInvest, which focuses on institutional asset management and competes with units of lenders such as Landesbank Baden-Wuerttemberg, DekaBank Deutsche Girozentrale and Bankhaus Metzler, isn’t part of BayernLB’s restructuring talks with the EU Commission, Moll said. The company’s profit rose 5.4 percent to 5.4 million euros last year as the cost-income ratio remained stable at 79.8 percent.
The company plans to increase its assets under management by about 3 billion euros this year, management board member Oliver Schlick said. “We are seeing above average growth from institutional clients such as insurers, pension funds and corporates,” he said.