FRANCE/US – AXA Group’s asset management subsidiaries’ revenues declined by 12.3% over the first half of 2003.

At AXA Investment Managers, revenues declined by 10% “driven by lower management fees due to a change in client mix towards lower-fee segments.” Assets under management increased by 6.9 billion euros from the end of 2002 to the end of the second quarter of this year.

AUM now total 275 billion euros, primarily due to net inflows of 6.1 billion, market appreciation of 6.3 billion, offset by adverse currency movements of 5.9 billion euros.

Its other fund management unit, Alliance Capital, saw revenues decline 13%. AXA Group attributes the decline to “lower advisory fees and distribution revenues”. Institutional research services fees were down by 16% due to a decline in transactional volume.

Assets under management increased by four billion euros over the first half. AUM is now at 373 billion euros. The increase was driven by positive net inflows of 5.8 billion euros and market appreciation of 30 billion euros, partially offset by an adverse currency impact of 31.7 billion euros.

The combined revenues for the two managers for the first half of 2003 were 26.4% lower than those for the first half of 2002. Asset management revenues for the first half 2003 totalled 1.379 billion euros, compared to 1.873 for the first half of 2002.

The two asset management subsidiaries contributed four percent to AXA Group’s total revenues which was 37.5 billion euros for the first half. Life & Savings contributed 63%, Property & Casualty 25%, international insurance seven percent and other financial services one percent

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