Good afternoon. This is the Chorus Call conference operator. Welcome, thank you for joining the Azimut Holding first quarter 2021 results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to hand the conference over to Mr. Gabriele Blei, CEO of Azimut Holding. Please go ahead, sir. Thank you very much. Good afternoon to everyone. We will go through the usual presentation as quickly as possible in order to leave you as much time as possible for Q&A. If we take slide number four, we highlighted three key metrics. First, net weighted average performance to clients, net of fees, 4.2% year-to-date, 200 basis points ahead of the index. Net inflows of EUR 10.3 billion in total, EUR 1.8 billion in managed products, of which EUR 400 million in private market funds. Net profit of EUR 97 million, or 100% vis-à-vis the first quarter 2020. Slide number five, we highlighted a bit of a recap of what has been done over the last year or so with a number of different initiatives, both in the M&A, business development, financial results context. As we would like to highlight in terms of the strategic rationale of what we're doing in terms of M&A, we are trying to increase the footprint of our presence in the countries in which we operate and/or in the asset classes in which we invest, such as the private market initiatives in the United States. More recently, the deal with a venture capital firm that we know since many years, P101, which will enable us to cover better the venture capital environment and tech environment in Italy. Moving to slide number six. We have recurring fees that are EUR 218.6 million, 13% year-over-year, and it's the new record level that we have achieved. Total revenues up 20% to EUR 273 million. If we look on the right-hand side of the slide, you can see how recurring revenue have progressed from EUR 193 million to EUR 219 million, or EUR 25 million more, of which I would say 2/3 is explained by Italy and 1/3 by our foreign operations. As far as the margin is concerned, we have continued the recovery since the drop of last year following the COVID emergency that started in March. We're now standing at 181 basis points. Turning to slide number seven, expenses. We are quite pleased with the development of the distribution cost, despite an increase in assets of EUR 4 billion quarter-over-quarter and recurring revenues going up 13%, we have contained the increase from EUR 93 million-EUR 96 million, and this is obviously a constant payout to the network, so 40% of the fixed management fee, whereas all the costs associated to the network, also due to the continuous limitation from COVID, have been contained pretty well in Q1. As G&A, as we have highlighted in the past several times, as far as the constant perimeter is concerned, costs are flat, if not slightly down, whereas there is an increase of 6.7% due to EUR 4.3 million of M&A transactions which were concluded and were not present in Q1 2020. I'm mainly referring to transactions in the United States and/or Australia. Moving to the right-hand side of the slide, you see how there is a further development of the cost line, that is in total EUR 160 million of the total operating expenses, with the cost-income ratio down to 40% versus 50% in Q1. Moving to slide number eight, the net profit. This is the best quarterly net profit in history for the company. We have reached EUR 97 million. If we look at the recurring net profit, this stands at EUR 86 million. As many of you are curious to understand how well are we performing in terms of returns to clients, we've shown this in the first slide, 4.2% net. What does it translate this for the company is a potential performance fees that will eventually cash in at the end of this year, as you know, the new pricing is working on an annual basis, of a solid figure, which we will see in the development of the year. How much we will be able to end up with. We are pretty satisfied with how things have progressed in the first quarter, and indeed, we see the EUR 350 million target at reach with normal market conditions, as we pointed out several times. Slide number nine, net inflows. This has been a very solid quarter in terms of net flows, even excluding the consolidation of Sanctuary Wealth in February 2021, thanks to funds and insurance flows that have increased from EUR 628 million in Q4 2020 to almost double in Q1. Solid development also in the private market. We still have a lot of funds that are in the fundraising phase, and a few others that will be launched from June onwards, which makes us remain positive as far as the asset gathering activity in the private market segment is concerned. Slide number 10. We reached almost EUR 73 billion, which equal to EUR 12.5 billion more vis-a-vis the end of 2020, so four months ago. International business stands at 35% of our total assets, so EUR 25.6 billion, and EUR 2.4 billion are coming from the private market. As I've already stated, EUR 10.3 billion net flows or, if you prefer, EUR 3.4 billion organic. We're also very pleased by the fact that 87% of our total assets under management are linked to mutual funds, alternatives, and life insurance products. Turning to slide 11, focus on the private market. We have experienced a growth of four times versus the beginning of 2020. The number of products today are 18 products, some of them are still, as I said, in the fundraising phase, versus six in early January 2020. Total assets are EUR 2.4 billion split across credit EUR 1.2 billion, private equity EUR 0.9 billion, and our infrastructure fund, that has almost EUR 250 million, while the venture capital is EUR 130 million. As you can see, this is split between Italy and the U.S., where in the U.S. we are progressing very well in terms of management of the existing funds and potential new fund launches in the coming quarters. Slide number 12, we wanted to give you a snapshot of the Synthetic Bank project. This is something that has been launched the beginning of the year with a number of different products. In the middle, you see a laptop, which basically tells you how this Synthetic Bank project works with the technology of our partners, Borsa Italiana and Epic, thanks to algorithms that enable us to be extremely efficient in terms of timing of the lending process. On the left-hand side, you see a number of different products that we have. The Debt Digital Lending Fund, which is focusing on guaranteed loans and commercial credits, and the Private Debt fund, the multi-strategy that is embracing performing and non-performing direct lending and special situations investment. The Capital Solution Fund, which has been launched with the help of Muzinich and other several Reserved Alternative Investment Funds. All of this will be channeling loans to SMEs. We have a target of EUR 1.2 billion between 2021 and 2025. Far we have managed to reach EUR 450 million, and this position us as a leader in the direct lending, also thanks to the partnership that we have successfully completed. The yield that we expect to provide is at least 5%, this is a project that will be rolled out in the coming years with a very high degree of attention. Turning to slide number 13, another initiative we have launched in February, the first security token issued by an asset manager in the world. It is a digital securitization of loan portfolio of Italian SMEs. These loans are originated by Borsa del Credito. They are guaranteed by the Mediocredito Centrale, which basically guarantees 90% of the portfolio. The token is a negotiable token. Actually, we have done the first transaction yesterday. It's thanks to the partnership of Sygnum Bank that we can enable this first venture in the tokenization world. Why did we do all of this? It provides diversification and it provides alternative solution to our clients. In essence, we have the possibility to speed up the ownership of a financial asset and simultaneously ensuring the transferability to investors of the asset itself. Through the distributed ledger technology. What does this produce? It produces lower cost and decreases the limitation of the intermediation. Turning to the U.S. venture, we have closed the HighPost transaction in the first quarter. HighPost has been founded by Mark Bezos and David Moross in 2019. They have set up this with the backing of the family offices of these two families. They are involving a number of different institutional investors in the vehicles that are about to be launched. Things are progressing well, and we're quite pleased with the interaction with David and Mark. On the Sanctuary front, we have completed finally the transaction in February, so we have consolidated Sanctuary just for one month. Assets since the announcement have grown 39% up to the end of April to $9.7 billion, and they are continuing to recruit significant partner firms with a decent pipeline still up to August, which is quite visible. These days, we have $11 billion of assets in the U.S., 28 investment professionals, 80 employees, and 140 financial advisors. Moving on to the asset management side. We wanted to give you an update on the ESG activities that we are continuously doing, mainly in our Luxembourg platform, but this is also involving our Italian asset management company as well as some initiatives that we have in Brazil or in Egypt with impact funds. These days, all our funds have an internal scoring where they invest, 95% of the investment are investment-grade ESG. All the funds have adopted the exclusion list. We are pretty in line with this new piece of legislation. We are finalizing the implementation of the best-in-class list. Last but not least, we have applied to all our funds the engagement policy. These days, all the fund range in Luxembourg are compliant. If you look on the following page, it tells you how the EUR 11 billion or more than 40% of our Luxembourg products are spread across different asset classes, across fixed income, equity, alternative, and allocation. We do have our alternative funds in Italy, the infrastructure fund that is ESG compliant, as well as a pension fund that is following ESG principle in the investment process. As I mentioned, we do also have an impact fund in Brazil and an ESG fund in Egypt. Turning to slide 18, performance net to the clients in excess of 4%. From January 1st, 2019, our clients are enjoying 14% of net returns, net of fees. Despite the drop of March last year, we've been able to fully recover that thanks to the work of our global asset management team. Page 19, you see the usual representation of the different macro asset classes, equity, fixed income, allocation, and what we call liquid alternatives. On the equity side, we have been able to overperform thanks to a good decision from our fund managers of being overexposed and enjoying the rally that we have witnessed in the first three months of the year. We are cautiously moving away from riskier stocks, although remaining invested. Today, we are around 40%, 42% equity exposure, but I would like to say that eventually we are less exposed to the volatility of the equity market. Fixed income, the index is down 0.8%. Our fund managers have been able to do a fantastic job there with a positive performance year to date of plus 1.2%, and this is mainly thanks to the active management style and the exposure to some emerging markets. Allocation combines basically the fixed income and the equity component, and thanks to the active management style, we are able to perform with a plus 6% year to date versus the index 4%. In the liquid alternatives, not much to say vis-a-vis what I've already mentioned in the last call. The index is very widespread, and we mainly focus on decorrelated strategies and strategies that invest in commodities. The comparison is not very appropriate. We still represent this in that last chart. On slide 20, not much to add. There has been a big rebound from our side in terms of net new money as a percentage of AUM. Considering the acquisition of Sanctuary, this would have gone outside of the slide. We are representing it in a decent way. Slide number 21, focus on our financial advisory network, 64 hires. We have done a lot of activity to pre-pensioning our advisors. I've seen some concerns that eventually the churn is somehow higher than usual. From our side, this is not impacting the flows nor anything within the network in terms of motivation and satisfaction. I have to say that if you look at the Assoreti data, net flows per FA are still showing a very good development of Azimut vis-à-vis our listed peers and the average of the industry, although there has been a catch-up from the listed peers in the first quarter of 2021, as we've seen, all of us, the data are quite supportive for the entire industry. If I look at our network specifically, average age across Wealth Managers and financial advisors is in line. Assets under management, on average, EUR 18 million versus EUR 50 million for our Wealth Managers, and 90% of what they manage is in managed assets. I'm leaving the floor to Alessandro for the usual Q1 financials. Yes. Thank you, Gabriele. We can move to slide 23, where we have the consolidated classified income statement. As already mentioned at the beginning of the presentation, we closed the quarter with a consolidated net profit of EUR 97 million, 2x the first quarter 2020. This is a great result, also considering that we are almost flat in terms of variable fees. The increase that we are showing is linked to our solidity, our attention on cost, and our growth in AUM. Back to the total revenue, we increased by EUR 45 million comparing to the first quarter 2020, with the operating costs that increased by EUR 7 million, with a net operating profit of EUR 38 million. The increase of total revenue can be simply explained by two lines, I would say. The recurring fees that strongly increased compared to the first quarter 2020 of about EUR 25 million. This is coming from the strong evolution and the strong growth in terms of assets under management in Italy and outside Italy. EUR 16 million almost from the Italian business and EUR 9.5 million from the foreign business. Another important variation can be addressed at the level of the insurance revenue. Again, here, the variation, almost EUR 17 million, is explained by almost EUR 2 million of new recurring fees, EUR 15 million are coming from the variable fees. At the level of cost, distribution cost increased by EUR 2.7 million. This increase is completely in line with the evolution of the recurring fees. Nothing changed in terms of remuneration. With that, we are absolutely consistent. What we are benefiting, and therefore, offset partially the variation, is mainly explained by the less activity in terms of cost and marketing cost that we are addressing on our financial advisors. We are helped, I would say, by the contingent situation that we are living. On personnel and SG&A, we are increasing cost of EUR 3.6 million, but if we consider the EUR 4.3 million are coming from the new perimeter that we are considering, linked to the M&A, as already mentioned by Gabriele, I would say that at the end of the day, the variation is negative. We are taking and we are maintaining what we told you in the past, our attention on cost and the discipline that we fix internally. Moving on the, let's say, non-recurring business at the level of the interest income, we have a positive effect of EUR 6 million. This value can be splitted by EUR 1 million of fair value option, EUR 1 million are coming from dividend of our minority stake, and EUR 3 million is coming from the active management of our liquidity in our own funds. We are flat at the level of the non-operating cost and the interest expenses. Moving to the net financial position. We are positive. At the end of March 2021, we have a net financial position of EUR 147 million. The variation that you can see from December 2020 is simply explained by the effect, the contribution of the net profit of the quarter. We have no variation in terms of treasury shares. In the following weeks, we will pay the dividend, therefore, we will impact, obviously, the cash. I will leave back to Gabriele. Thank you very much, Alessandro. As always, summary and outlook, slide 26. We try to picture graphically where we stand vis-à-vis the EUR 350 million target, which we take very seriously, as always. If we divide the EUR 350 million by four, we can see how we are ahead of what is a mathematical exercise. Clearly, Q1 has benefited from a number of different aspects that we have tried to summarize in the previous slides. We are seeing Q2, or at least so far since the beginning of Q2, an ongoing progression of what we have observed in Q1. So far so good. Obviously, the performance fee element is a big variable, which we'll know just at the end of 2021. As far as net flows are concerned, we are organic at EUR 3.4 billion vis-a-vis our objective of at least EUR 4.5 billion in line with 2020. I think the next couple of months will still be solid months in terms of activity, both on the fund side as well as our private market initiatives, as well as our international operations. We will see how things evolve, but we can eventually come back to you with an update on the figure when we speak again in the end of July. The business is constantly evolving, but we're able to maintain a very profitable company with 80 basis points of net profit over total managed AUM. This is the combination of a number of different factors. First and foremost, the quality of the people that we have within the company, both in Italy and abroad, the innovation and product launches that we're able to do, and the effectiveness of our distribution channels to address or readdress the allocation of our clients. Going forward, EUR 350 million is the target on slide 28. Under normal market conditions, we stress this because, unfortunately, this is the only variable that we are not able to control. On the Italian side, the product development is ongoing, public and private. We have three new funds on the pipeline that will be launched on the private side, a number of funds on the public side. A reorganization that is almost completed. All this will be improving the network efficiency. Recruitment is ongoing. We still have a number of options that are under negotiations. 64 FAs means also that we have hired, I would say, a good chunk of that is referring to young guys or sons and daughters of colleagues that will be the future of the business. We're quite pleased with that. The absolute numbers tend to increase the overall figure, but the quality is more important than ever. Top-line margin is expected to remain consistent. So far, we do not see major swings as far as the margin is concerned. Again, markets will eventually drive the volatility within the margin. International business. I said the global asset management team is working as a reality by now. It's a fact that we have 150 colleagues around the globe working together and sharing information and sharing ideas, which are benefiting, obviously, the results that we can produce for our clients. We are developing integrated businesses in mostly or almost all of our countries, Australia, U.S., Brazil, Turkey, Egypt, and so on and so forth. I think the improvement in profitability that we have started to see is something that will stay with us for some time, again, albeit the volatility in the emerging markets. Lastly, private markets, EUR 2.4 billion. Honestly, I think this figure will be higher at the end of the year. It depends how successful the new fund launches will be. We expect to meet at least the EUR 3 billion mark by the end of the year. Actively fundraising on different products across the alternative space. This is something I mentioned several times. You will see some closing before the summer starts. Actually, the monthly flows that we issue is not including all this fundraising activity that we are mentioning now. That's it from us, and we leave the floor to you for any Q&A. Excuse me, this is the Chorus Call conference operator. We will now begin the question-and-answer session. Anyone who wish to ask a question, please press star followed by one on the touch-tone telephone. To remove yourself from the question queue, then you would press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star one at this time. The first question is on the line of Villa, Alberto with Intermonte. Please go ahead. Hi, good afternoon, ciao, Gabriele, Alessandro. A few questions from my side. Congratulations for the results. The first one is on the insurance revenues that are showing a very impressive progression and growth. I was wondering if you can give us an idea of how important is the variable component there in the first quarter, and how we should look at this line item going forward, if the result of the first quarter is something that we shouldn't take as granted for the next quarters, or how we should look at it. Thank you. The second one is on the profit guidance of EUR 350 million. Of course, that's based on normal market conditions. I was wondering if you have any idea what is the floor of net profit, even in, let's say, seriously adverse market conditions, given the growth of the company and so on. We have seen other years of very tough markets and negative performance and so on, and it has had a big impact on Azimut profitability. My feeling is that the change in the fee structure and the growth and the diversification has somewhat improved the, let's say, resiliency of your profit to adverse market conditions. I don't know if there is any kind of sensitivity you can share with us on that. Finally, it's more a question on something I'm not very familiar with, which is the token stuff, and if you just can give us an idea of what is the potential opportunity there for the company. It's something pretty new, at least for the Italian market on the retail side, and I'm pretty curious about what are your ambitions there. Thank you. Thank you, Alberto. Insurance revenue. First, I would like to point out the fact that we have raised assets up to April of EUR 147 million, and total assets in insurance revenue stands at EUR 6.5 billion, EUR 6.6 billion year to date. We had a number of years in the past where this product range suffered for a number of different aspects. This is finally a turning point where we're able to raise money and perform very well in terms of the different product that we have. We see an evolution in that line based on the growth in the assets, and definitely also in terms of performance fee generation. How much of that is repeatable, it depends on the market for some extent. There is a strong support from the growth and the perception that we have, and we see coming from the network as far as these products are concerned, which has been pretty changed from a reorganization that we have completed last year and is about to be completed, the last couple of things, during 2021. Profit guidance and the floor. It's pretty difficult to answer, but my perception is that the stickiness is there. Obviously, we are capable of retaining our clients within the managed product. We've demonstrated this in the past. Obviously, what triggers the volatility in the market triggers the swings in the basis points that we can extract out of our assets, but because of a more conservative asset allocation. We have seen from last year how things can revert back to the cruising speed of 178, 180 basis point margin. Eventually, time will tell if with the new pricing scheme, the resiliency is more and as we expect, to the tune of what we expect. In my mind, the profile of our P&L has improved substantially, which makes us more solid in terms of the investment that we want to make and the evolution of the business going forward. On the token, the potential are huge simply because behind the token, there is the blockchain technology that enables us to be a lot more efficient and to overcome some of the typical hurdles behind a financial transaction. You have to go to the notary, you have to have a number of different gatekeepers aligned in order for the transaction to finally be completed. Here is technology that triggers everything in seconds at a fraction of the cost of the typical transaction. It is something that can be applied virtually to anything. We did this first attempt of creating this token, which will be used within our products, not sold directly to our retail clients. It's a first attempt. As you see, it's just for EUR 5 million. As with all the strong innovative development, we want to first be sure that it's tested well and works, and then we can deploy this on a mass scale. We believe that the blockchain technology will slowly but surely create a lot of advantages within our industry, and not just our industry. Time, again, will tell if we're on the right side of history or we're just too much ahead of it. Okay. Thank you very much. The next question is on the line of Santoro, Domenico with HSBC. Please go ahead. Hi there. It's Domenico, HSBC. Thanks for the presentation. I do have a number of questions. Coming back to your guidance of EUR 350 million, I know that you are not going to raise the guidance as of now or make any comments, but let's rephrase the question. What needs to go really wrong in order for you to disappoint on the net profit target? In other words, given the fears on inflation in the market, the steepening of the curve, what is the part of your business that might be a bit more exposed to the market dislocation, if any? The second question is on the cost. You mentioned that Sanctuary is consolidated for one month. I'm just wondering what's the contribution of Sanctuary on cost and fees as well, given the consolidation for one month only. I just want to understand. You're doing very well on the cost side, because the other part of the business is, of course, reducing, is doing well. I'm just wondering whether this number for the quarter is a clean number for the next, or we should consider a bit more, given the consolidation of Sanctuary. A bit of a call on the margins evolution. How do you expect this to evolve? Regardless of the mix, we don't know what happens with the market, right? I noticed that the equity component has gone up. I just wonder, given the mix of products that you intend to distribute, how shall we expect margins to evolve going forward? I know it's an annoying question, allow me to ask again on the payout, which is very low. I just noticed that it was ex- performance fees in the insurance component, 40% in the second quarter of last year, 40% again in the third, and then there is a little bit of catch up in the fourth quarter. I just wonder whether this is correct, it is going to happen the same for this year, and on what is based this catch up in the ultimate part of the year, in the fourth quarter. Thank you. Sorry for the long question. No problem, Domenico. Thank you for the questions. On the guidance, what can go wrong? God knows what can go wrong, I have to say. Honestly, we were, a year ago, in a lockdown scenario, and we were slowly recovering from a drop in the financial market that pushed our net weighted average performance down to -16%. I remember back in June, we were down 2%-4%, and then we recovered everything towards year-end and closed positive by +1.2%. I have no crystal ball at hand, and in order to impact the EUR 350 million, which we were reiterating our previous guidance back in March and July in 2020, we're doing the same here. We're saying we did a very good first quarter. I think everyone in the company is extremely satisfied by the way the fund managers, the network, the employees, anyone just reacted to a good 2020, which we closed at EUR 382 million. Somehow, people could say, "These guys are probably satisfied. They won't make it." We're here, we're working very hard. We're putting ahead of our client's investment solutions that are innovative, and we want to reach the EUR 350 million target. Again, we don't control the market. The market can abruptly change, and things can go very bad. If I hear what our fund managers are saying is, inflation can rise, interest rates can rise. We have a very opportunistic approach at this time of the year as far as our exposure and riskiness within our portfolios. We consider potential drop in the market as an opportunity to build back some of the positions that we scaled down. Eventually, we are kind of still in the constructive phase of the market without any major concern over the medium term as far as 2021 is concerned, when it comes to the financial market. To us, the guidance is at reach. We're not moving the needle. We're seeing short-term volatility as an opportunity to potentially re-increase our exposure. Sanctuary Wealth contribution, I would say negligible in the sense that between what we have consolidated in terms of revenues and costs, was slightly negative, but to the tune of EUR 1 million. Nothing major there. As you have seen, assets have increased dramatically. In the moment, they are investing so heavily in growth, the results are somehow penalized. This, over the medium term, will be completely overturned. Mix of products and margin evolution. I think what we have seen, again, if you take a long investment horizon, is quite of a resiliency in terms of how we are capable of managing the up and down of the margins. The mix of products about to be launched does not compromise the margin profile overall that we have. Nothing should change when I look at the product launches. I would say that the higher recurrent fee component and the stickiness of the assets, given the product market initiative, should create longer -term visibility on our capability of retaining the margins and generating management fees. Payout to the network. Honestly, I understand the question, and we are maintaining the same payout to the network. Nothing has changed. What is changing is, still in 2021, the first quarter, there is limited activity that we can do in terms of gatherings, in terms of events, in terms of marketing expenses. Just consider that in the first quarter last year, we had the annual convention with 2,000 people gathering in the same place for two days with all the costs associated, which are not there this year, simply because we did the same thing over three days, but digitally. At a fraction of the cost, with exactly the same results in terms of outcome, if not better, because people were very pleased with the way we handled the convention. All in all, the trend is a trend that is consistent with the growth of the recurring fee component. Versus Q4 had an element of variable component simply because we didn't do just the target, but we overcame the target by more than EUR 80 million. This has to be somehow gratified to the people that work in this company. Can I just ask where, as things they stand now, the 4% growth in terms of guidance and costs still makes sense, or? In terms of SG&A, I think it makes sense. What could change is the different perimeter in terms of M&A transactions and/or special investments that we could make in the private market initiative. Other than that, it's feasible. I understand. Thank you very much. My pleasure. The next question is from the line of Lam, Hubert with Bank of America. Please go ahead. Hi, good afternoon. I just got a couple of questions. Sorry to ask you again on the acquisition costs. Again, I think you explained why it was lower in the quarter due to limited activity around marketing and gatherings, et cetera. If we expect life to kind of go back to normal towards the end of the year, should that percentage of the distribution costs against recurring fees go up? How much do we think it can go up by? That's the first question. Second question is on M&A. You've done quite a bit of M&A over the last several months. Do you expect to do more M&A in the near term? What do you have in the pipeline, and what type of areas would you consider expanding into? Thank you. Thank you, Hubert. Thanks for the questions. On the distribution cost, honestly, given the overall situation, although very improving, even here in Italy, we don't see a pickup of, let me say, the cost associated to the network up to, I would say, September. We are halfway through Q2. There is the summer break, which typically has a less intense activity. Eventually, we even hope that at some point we could do something with our network and have a way to go back to normal life. I would say that up to September, it's somehow nothing material should happen. I would tend to see this distribution cost evolution of the marketing cost pretty under control. M&A, this gives me the opportunity of eventually explaining why we just paid EUR 1 of dividend. When I say just is, indeed, we did a very strong net profit last year. We paid a dividend in 2020, and we're paying the same dividend in 2021. This is because we see a lot of opportunities. We see that we have options to invest in the business, both in the regions in which we are present and in the asset classes that we want to develop. We have debt, and we want to repay the debt. This is something we want to stress all the time. If you put everything into the context of how much cash flow we're generating, and you add up the numbers, you see how things are progressing as we want. We are generating cash to remunerate shareholders with decent dividends and decent dividend yields. We are able to fund investment by our own, and we will be repaying the debt as and when they fall due. Great. Thank you very much. My pleasure. The next question is from Perini, Elena with Intesa Sanpaolo. Please go ahead. Yes. Good afternoon. I've got some questions, and I'm sorry if you have already answered them, but I was disconnected for some time. First of all, about your insurance revenues, if I remember well, they also factor in the performance fees, which are not subject to the new scheme. I was wondering if you could provide us with the amount of the performance fees included in the result of insurance revenues for the first quarter, and what kind of run rate we can imagine for them going forward. Another question was about your April net inflows, and in particular, your assets, because they grew a bit less than the amount of net inflows. I was wondering if there was some kind of performance effect, or it was more an issue of exchange rates due to the fact that you have a significant exposure in terms of foreign business. Thank you very much. Thank you, Elena. Insurance revenues, as I was saying before, we have developed the business pretty decently since the beginning of the year, with EUR 150 million net flows into that product range, reaching EUR 6.6 billion assets under management. We do see a benefit from this kind of uplift as well as, indeed, as you were pointing out, the contribution of performance fees, which have sustained the revenue line. Going forward, what we can expect is the buildup of the assets to continue, and then whatever is going to happen on the market will impact positively or negatively the revenue line going forward. As far as the net flows are concerned, there is a slightly negative monthly performance in April, nothing major. Mostly, what explains the variation is the FX movement, which somehow has to be taken into consideration when looking at our figures in euros, given that nowadays, 35% of the assets are linked to assets in currencies other than euro. We somehow have this impact that we have to factor in, given the fact that we're not hedging our currency exposure at any level. Okay. Thank you. My pleasure. The next question is from Bairaktari, Angeliki with Autonomous Research. Please go ahead. Good afternoon. Thanks for taking my questions. First of all, if I may also ask on the gross management fee margin increase quarter on quarter. I see that the equity component has increased, I was wondering, the margin increase is quite substantial, around four basis points. Is there any chance that this was driven also by private market funds that may have a much higher margin or anything else? Is there any sort of non-recurring element in there? Going forward, as you will start sort of consolidating Sanctuary for the full quarter from next quarter, what should we expect in terms of margin? Is it fair to expect some margin dilution on the back of the Sanctuary assets? Second question on the ESG AUM that you've disclosed of EUR 11 billion. Are all of this classified as Article 8 or 9 under the European SFDR? Last question on personnel costs, which were 19% higher year-over-year, could you give us some color on what drove this increase, please? Thank you. Angeliki, I'll try to answer first to the last question, where you ask about the SG&A line, right? Yes, exactly. Yeah. I broke that into the personnel expenses that you disclosed in your press release today. Yeah. If you take slide seven on the presentation that I flipped through, you see how indeed, costs are up 6.7% year-over-year, because of the EUR 56.2 million that compared to EUR 52.7 million. If you take out the change in the perimeter that has been occurring between one year, you see how costs are down 1.5% because we are extrapolating EUR 4.3 million linked to M&A activity. Okay. Yeah. I get that there is the M&A scope effect. I guess what I was after is, if I look at your detailed P&L in the press release that you released today, I can see that personnel expenses are EUR 31.6 million. Yep And they were EUR 26.5 million in Q1 2020. That's a big increase. This is fully explained with the change of the perimeter I was mentioning before. Okay. That's what I wanted to check. Thank you. Yeah, absolutely. Going backwards. The ESG AUM Article 8 and 9, yes, confirmed, they are compliant with those two articles, and we are very pleased with that, because we've been able to do so in a very short period of time. Sanctuary consolidation. If the question is, does it dilute your margin of the overall business? The answer in the short term is yes, of course. They are in the investment phase, and they are not yet embracing the integration between production and distribution that is the guiding principle of our business model. In the short term, I'm not expecting a margin uplift. What we are expecting from Sanctuary in 2021 is almost a negligible contribution to our P&L. Then assuming a normalization of the pipeline of the investment, and the growth, and the fact that they will start to use, potentially, our production centers down in the U.S., we will see a stronger contribution in absolute numbers to our P&L. Gross management fee, the four basis points. I have to say there's no secret sauce there. It's the product mix. It's the fact that the network has focused their attention on insurance products, managed funds, our own funds especially. This is driving the margin uplift. Once again, looking at these things over just the quarterly variation, whether positive or negative is a very short timeframe. This time worked in favor of the commercial activity that the network is doing. The plus four basis point is something we take home and are quite happy about. Ms. Bairaktari, have you finished with your questions? Yes. Thank you very much. Thank you, Angeliki. Next question is from the line of Prini, Filippo with Kepler. Please go ahead. Yes, good afternoon. I've got three questions. A couple of Sanctuary. The AUM increased a lot to $9.7 billion at the end of April. Despite that, you confirm a neutral contribution to your net profit for this year. This is due to the growing costs or something else that is not compensated by the increase of AUM? Still on Sanctuary, just if you can share us some perimeter for the full consolidation for the next quarter. Is it fair assuming a sort of 1% gross margin with the passive commission, that could be 70%-80% of the gross commission? The third one is on your net financial position. You mentioned the pay down of debt. You've got a bond that's maturing in 2022. Should we suppose that this bond should be fully paid down and not rolled over with a new one? Thank you. At this stage, we're not assuming a rollover of the bond. We are going ahead with what we have shared with you in the past in terms of repaying down the debt and adopting this discipline. In terms of the Sanctuary AUM increase, it's not one plus one equals two all the time. Because when you hire an advisor, you incur the cost, and then the assets are transferred over the following 18 months. Typically, this is what happens also at Sanctuary, and therefore, the revenue generation builds up over time. In this case, if we see the Sanctuary evolution, you should go a bit beyond just the increase in assets and increase in revenues equals the cost. Margin, I would say yes, as far as we know the business today, without the integration with the production that I was mentioning before. Eventually, this is something that creates an opportunity rather than concerns us just because it dilutes the overall margin profile. Thank you. My pleasure. As a reminder, if you wish to register for a question, please press star one on your telephone. The next question is from the line of Ellinas, Panos with Berenberg. Please go ahead. Yeah, hi. Thank you for taking my question. Net inflows have been strong so far in the year, and I presume the key driver to this would be strong gross sales. I was wondering if you could comment on the level of redemptions or withdrawals you have seen so far in the year. I mean, is it similar to previous years, or have you also seen an improvement in the stickiness? If I add to that, would you also expect a sort of uptick in the withdrawals given the profit-taking element? Thank you. Thank you, Panos. Well, if I compare the level of redemption of last year, same period, throughout the rest of 2020, it was very low, and unusually very low. This is mainly due to the fact that client inertia and the stickiness of our financial advisors played a big role in diminishing the gross outflows. This is typically what we have observed historically in very negative markets over the past. This year so far, they have a slight increase, nothing substantial. We're still not up to the same level. Consider that if we look at our network in terms of financial advisors, I give you a number that provides you an indication of how widespread is the activity behind the financial advisors. 75% of them are posting positive net outflows, net inflows, sorry. This is unusually high, let me say, and it is also supporting the results in terms of performance that we're providing to clients and the investment solutions that we are allowing them to have and to propose to clients. All in all, slightly lower gross outflows and a very positive contribution from a very large number of financial advisors in terms of the net flows contribution. Thank you. My pleasure. Ladies and gentlemen, there are no more questions registered at this time. I will now pass the floor to management for any closing comments. Thank you. We thank you for your time, and we look forward to speaking to you again at the end of July. Bye-bye.