The Asset Managers segment comprises Swiss Life’s Group-wide asset management activities.
In 2017, Swiss Life Asset Managers posted a segment result of CHF 258 million (previous year: CHF 243 million). This equates to a 6% increase. Commission income and other earnings rose by 11% during the year under review. Adjusted operating costs rose 11%, driven by continuing growth in third-party business, mainly in the real estate area.
Assets under management by Swiss Life Asset Managers came to CHF 223.6 billion at the end of 2017. Assets from insurance business rose by 5% to CHF 162.2 billion. Due to the long-term nature of its liabilities, Swiss Life invests predominantly in fixed-income securities, which accounted for 62% of the portfolio at the end of 2017. The real estate holding increased slightly to 18% and the net equity holding was 3%.
Third-party business also grew: Swiss Life Asset Managers had assets of CHF 61.4 billion under management at the end of 2017, an increase of 24%. The latest expansion in third-party business enabled Swiss Life Asset Managers to achieve net new income of CHF 7.1 billion. Growth in institutional mandates, equities, mixed and fixed-income investments and real estate products made a big contribution to this growth, while money market funds experienced outflows.
Following the acquisition of Mayfair Capital Investment Management Ltd. and the commencement of operations by the German investment management company (Swiss Life KVG), the focus in 2017 was on new product development: in the securities area, one notable development was the launch of a Multi Asset Risk Premia Fund for the first time. One new real estate fund for private investors was launched in France and another in Germany. In addition, pan-European real estate funds were established, which invest in properties located in various European countries. As a result, Swiss Life Asset Managers can address a major need of institutional investors. Swiss Life Asset Managers is responding to the strong growth and rising demand by regularly conducting structural reviews. The three asset management companies located in Switzerland were consolidated during the reporting year. Similar proposals are also under review in other countries. With its extended product range and reinforced cross-border cooperation, Swiss Life Asset Managers has created the conditions for further third-party business growth and the expansion of its own position in its core markets. It will continue to pursue this strategic path.
Key figures for Asset Managers
|Amounts in CHF million||2017||2016||+/-|
|Fee and commission income||645||591||9%|
|Other income||179||56 1||n/a|
|TOTAL INCOME||824||651 1||26%|
|Operating expense||–564||–406 1||39%|
|Assets under management||223 649||204 188||10%|
|Number of employees (full-time equivalents)||1 577||1 484||6%|