Groupama Asset Management: A responsible, solid and reliable asset management company

A subsidiary of Groupama, Groupama Asset Management favours a responsible approach to asset management combining analysis and anticipation of situations, firm and controlled commitments, the search for financial performance and compliance with environmental, social and governance (ESG) principles as part of a business relationship built on proximity and trust. Practiced daily by the teams of asset managers and financial and non-financial analysts, as well as by sales teams and support functions, Actively Responsible Management at Groupama AM was reaffirmed in 2010 through a new corporate advertising campaign and tagline: “The Actively Responsible Asset Manager”

In 2010, Groupama Asset Management confirmed its role as a major player and reaffirmed its originality. In a difficult economic and financial environment, and within a more stringent regulatory framework, Groupama AM’s very satisfactory results attest to the relevance of its long-term strategic decisions. In 2010 Groupama AM posted net turnover of €138 million, an increase of 3%. The net profit of €25.6 million, up 6%, reinforces the company’s financial soundness.

Assets under management totalled €89.9 billion as at 31 December 2010, an increase of €1.1 billion. In 2010, Groupama AM recorded net outflows of €1.9 billion, mainly in money market assets, despite positive inflows in France of €1.1 billion from the Group’s various entities, and €1 billion internationally across all asset classes for clients both inside and outside of the Group.

Growth driven by international business

In 2010, outside of France, Groupama Asset Management grew by putting its expertise to work for the Group’s international subsidiaries (for which it manages €7.6 billion) in Italy, Spain, Hungary, the UK, Greece and Portugal. A range of Groupama AM funds is offered through insurance policies distributed in most of the Group’s international subsidiaries. Outside of the Group, Groupama Asset Management strengthened its European business through its Italian subsidiary Groupama SGR which had positive inflows in 2010 across all asset classes. The Spanish branch also continued to develop.

In 2010, Groupama Asset Management fortified its teams dedicated to international development, grouped within an international sales department. Lastly, a Luxembourg-based SICAV, “G Fund”, was launched in late 2010 to pave the way for growth in Europe.

A tailored asset management organisation

To better meet its clients’ needs, Groupama Asset Management will create Sigma Strategies, a new department within the Asset Management business headed since February 2011 by Antoine de Salins. The new structure will result from the merger of Groupama Fund Pickers into Groupama AM on 15 April 2011. This new department will bring together the Absolute Management and Multi-management departments, which already have strong similarities. The combined asset management offering will include the alpha and convictions range, funds of hedge funds and directional management.

The investment teams all share the same philosophy: resolutely active asset management that offers long-term controlled performance. The research team remains central to this strategy: composed of economists, financial and non-financial analysts and financial engineers, it accounts for one-third of the Asset Management business’s staff and budget. Non-financial analyses are an integral component of all analyses.

2011 outlook: Continued growth in France and abroad

In 2011, Groupama AM will pursue growth both in France and abroad.

Its strategic goals are to:

• improve operating efficiency;
• expand its client base: Groupama AM will continue to develop an institutional client base in new geographical regions in Europe, to capture new types of clients (sovereign wealth funds, central banks) and to position itself for clients of distributors in France and Europe;
• broaden its management offering, particularly by developing the absolute and conviction management offerings.

By strengthening its International Sales team, launching the Luxembourg-based SICAV, G Fund, and creating the Sigma Strategies organisation Groupama AM has equipped itself to achieve its ambitious goals.