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Class Editori News

Eurizon to grow in China in Joint Venture with Penghua Fund

February 13, 2020


Abstract : Corcos, CEO of Eurizon, the first Italian asset manager, believes that the market, which is usually able to see beyond, has already set aside the major concerns regarding coronavirus.

MILAN, Feb. 12 (Class Editori) -- Tommaso Corcos, CEO of Eurizon, the asset management company of the Intesa Sanpaolo Group, has announced that he is considering to widen its presence in the Asian area, particularly in China, also through M&A operations.

"The company is currently considering possible M&A opportunities and also to widen the presence in the Asian area, a territory extremely important for us", the manager specified, on the occasion of the presentation of the results recorded in 2019 to the press, which have been particularly positive.

Corcos also mentioned the situation caused by the coronavirus epidemic, which according to him is "under control". "China has taken promptly measures and the market, which is usually able to see beyond, has already set aside the major concerns regarding this topic", Corcos explained.

Eurizon is active in China thanks to Penghua Fund Management, in which it owns a shareholding share amounting at 49 percent, while Guosen Securities is a 50 percent shareholder, and is currently managing 82 billion euros.

Penghua is one of the main Chinese operators in the asset management sector, specialized in the management of assets for third parties, through funds for retail customers and social security funds, characterized by Qualified Domestic Institutional Investor (QDII) and asset management.

Taking into account also the Shenzhen-based company, the total assets managed by Eurizon have overcome 417 billion euros in 2019, recording a consolidated net profit of 518.5 million, which is showing an increase by 11.5 percent y-o-y.

The commission income has reached 799 million (+14 percent y-o-y). In terms of funding, figures have confirmed the upturn started in the second quarter with a constant strengthening trend. Since the beginning of the year, net flows have exceeded 10 million euros, thanks to the new company Eurizon Capital Real Asset (Ecra), which has brought 3.4 billion euros, received under delegated management by Intesa Sanpaolo Vita.

Eurizon has reached the top level in terms of funding of the asset management in the Italian industry, with a total amount of 6.6 billion. The major contribution derives from open-end funds (+4.6 billion) followed by the management of institutional portfolios, that, with the exception of Ecra contribution, are recording incoming net flows up to 3.3 billion.

"This is a particular positive closing of the year: the industry growth rate is close to 2 percent, there is a very competitive industry which every year assists to the incoming of new players and a funding which is concentrated in few hands, where the reputation aspect is assuming increasingly more importance", as Corcos stated, "in the six-year tenure we have addressed the company towards a developing path, which, since December 2013, has been leading to an assets growth by 80 percent".

(Source:Class Editori)

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Keyword: China JV Eurizon

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