NETHERLANDS - Assets under management at the giant Dutch financial services ING Group dropped by 12.5% in 2001to 449 euro billions with assets managed for institutional clients falling by 21.1%. The asset management share of group operating profits amounted to 283 euro millions declined from 10% to 5% in 2002.

The fall in assets by 64.2 euro billions, comprised 36.7 euro billons due to the drop in stock markets, with weaker exchanges against the euro accounting for a further 39.1 euro billions. In US dollar terms, the AUM increased by 4% despite the downturn, says ING.

There were net inflows of assets amounting to 7.3 euro billions, coming notably from ING Investment Management, ING Aeltus, ING Real Estate, as well as from the US operations. The retail market in the Netherlands contributed 1.2 euro billion.

The share of third party business, accounting for assets of 290 euro billion, made up of mutual funds of 161.1 euro billion (down 12.4%) and institutional business, where assets of 128 euro billion were down 21.1%, fell to 64.76% ( 67.7% at the end of 2001).

At year-end, equity accounted for 34% of assets, fixed income 57%, real estate 6% and cash, 3%. The group says that longer term investment performance was satisfactory,

As part of a restructuring process, ING Investment Management has been integrated in the regional executive centres of ING Europe, Americas and Asia-Pacific, with each centre combining insurance, banking and asset management, as from the beginning of 2003. This is to “create the best possible conditions” for working closely with the distribution channels, the group says.

The European centre is chaired by Angelin Kemna, who is responsible for front office investment activities for equities, fixed income, credits and structured products bonds, with Gerrard Bergsma responsible for Dutch activities, Jochen Lucht for operations and IT, and Michel van Elk for marketing and sales activities. Fred Hubbell heads up the am and the Asia-Pacific centres.

Alexander Rinnooy Kan handles has responsibility for ING Real Estate, ING Trusts and Barings Asset Management.

The European centre will report to Michel Timant, who is chairman of executive centre Europe and is a member of the executive board of the group.

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