Our investment solutions

On the strength of its experience acquired with the insurance companies of the Groupama Group, Groupama Asset Management proposes investment solutions specifically tailored to institutional clients. These solutions are based on combining the specialized expertise in asset allocation and portfolio composition of the expert teams of Groupama Asset Management.

Assets & Liabilities Management

Groupama AM has diverse and complementary expertise that enables it to propose a broad range of tailored solutions that perfectly respond to the principal current problems of its clients:

  1. Search for performance and control of volatility of returns
  2. Search for hedging of capital and high performance
  3. Search for asymmetrical performance
  4. Maximization of the performance of portfolios within a regulatory framework
  5. Search for diversification and flexibility in asset allocation
  6. Search for hedging against extreme risks on fixed income and equities markets.

Asset Allocation

The quest for the right balance between performance and risks is the central aim of each of the asset allocation solutions of Groupama Asset Management, in order to meet the fundamental expectations of our clients.

Groupama AM provides support to each client in the management of the risks of their asset allocation, in the search for diversification and flexibility.

These asset allocation solutions are structured around three types of allocation:

  1. Dynamic allocation solutions. These solutions are principally addressed to the clients that have already defined their strategic allocation but who are looking to optimize the generation of alpha (“outperforming” compared to theoretical performance) by means of tactical allocation and the selection of underlying funds, while remaining inside a predetermined risk framework. Tactical allocation aims to profit from short or medium-term variations in the financial markets, and to identify complementary sources of performance that remain eligible for the management mandate. The use of performance factors, such as size of capitalization, momentum (technical analysis indicator) or low volatility, provide means of diversifying an equity portfolio in addition to the traditional geographical and sectoral levers,
  2. Convex allocation solutions. These solutions are based on active modulation of the exposure to the different asset classes and a permanent quest for diversification of risks and management strategies. These solutions are able to obtain a minimum level of financial performance in adverse markets by reducing the proportion of risk assets if performance approaches the initially defined minimum level. Ideally, this protection is calibrated directly with the client.
  3. Allocation solutions subject to capital constraints and/or liability constraints. These solutions are based on the dual expertise of Groupama AM’s specialized managers in insurance and asset management and are constrained within a controlled regulatory and operational framework. The aim of these solutions is to maximize the rate of return of the portfolio while being specifically calibrated for the individual needs of the client, as a function of the client’s aims, liabilities structure, wealth variation or again the client’s tolerance for risk. They aim to generate stable and foreseeable income via good management of the maturities schedule, rigorous selection and good diversification of the issuers in the portfolio. Finally, for the clients subject to Solvency 2, Groupama AM seeks to optimize the capital cost of their investments and to reinforce the robustness of their allocation by leveraging the effects of diversification and resistance to market volatility.

A tailored approach

Several years of financial and stock market crisis have led to a degree of rethinking and have favoured the emergence of new investment trends.

Conceiving and developing tailored investment solutions

In markets that have become more complex and less rewarding, asset allocation, like risk/reward arbitrage, has become more difficult. In addition, numerous regulatory and accounting developments are further impacting allocation decisions.

Innovation, diversity and complementarity

Today, Groupama AM has diverse and complementary expertise that enables it to propose a broad range of tailored solutions and to respond to the main current problems of its clients:

  1. Search for performance and control of volatility of returns
  2. Search for preservation of capital and performance
  3. Search for asymmetrical performance
  4. Maximization of the performance of portfolios within a regulatory framework
  5. Search for diversification and flexibility in asset allocation
  6. Search for hedging against extreme risks on fixed income and equities markets.

The management solutions proposed by Groupama AM are enriched by numerous associated services: portfolio analysis, personalized reporting, support in carrying out ORSA (Own Risk and Solvency Assessment), calculations of SCR (Solvency Capital Requirement) …

An optimized investment decision

The approach of Groupama Asset Management consists in focusing on the differentiation rather than the exhaustiveness of its proposed management services.  For example, Groupama AM develops investment solutions based on the diversity and complementarity of benchmarked active management solutions (money market, fixed income and equities management), external solutions and on combining its specific expertise in asset allocation and portfolio composition (diversified management, flexible management and assets/liabilities management).