Third-party distribution: net inflow of 3.4 billion euros for Groupama Asset Management in 2016
The assets under management of Groupama Asset Management increased by 5 billion euros in 2016, reaching a total of 96.8 billion euros (as of 31 December 2016).
The assets under management of Groupama Asset Management increased by 5 billion euros in 2016, reaching a total of 96.8 billion euros (as of 31 December 2016). This growth has been sustained by significant net inflow from external customers.
The robust inflow of subscriptions and the good performance delivered by our investment management teams confirm the positions taken in the company’s development strategy over the last few years, combining the diversification of target customer classes with a diversification of geographical locations, through the internationalization of the company’s product range.
“This expansion of our range is strategic, giving us the capacity to meet the growing needs of our customers, both in products and services. It has also contributed to overstep the “critical mass” of assets under management, so that we are able to pay off our operating costs over a wider asset base, making us more competitive,” explains Philippe Setbon, CEO of Groupama AM.
Net inflow from third party clients has now reached 3.4 billion euros and is distributed across diversified asset sources. While cash management and absolute return management (along similar lines to management solutions focusing on alpha* in the credit universe) attracted the largest share of the increase in subscriptions, other strategies, including bonds, convertibles, small and mid-caps, strategies based on the return of inflation and, finally, Asset Liability Management have all also contributed to the growth in total assets under management.
“Our entire range was effectively acclaimed by investors. Also, we are continuing to diversify our customer base, with third-party distribution taking an increasingly important place. It provides a strategic relay for the growth of Groupama AM, although asset management for institutional investors and mutualist and providential insurers remains our core activity,” comments Thierry Goudin, Head of Business Development.
Increase in international activity
The reinforcement of Groupama AM’s activity outside France is reflected by its inflow of 1.8 billion euros from international external clients, compared to 1.6 billion on the French market. The geographical footprint of our management service has also developed significantly, and foreign markets now represent more than 25% of the total assets under management for third party clients, compared to 15% only two years ago.
Groupama AM has accelerated its development in Spain, Belgium, Luxembourg, Switzerland, northern Europe and Latin America, while Italy has been a familiar market for the company for many years. Groupama AM has become one of the key players in the pension funds segment. “We have just won a tender from the biggest Italian pension fund, which plans to entrust 1 billion euros of assets to our management. The next step in Italy is to penetrate the third-party distribution market,” explains Jean-Marie Catala, Deputy CEO. “Our international organization is ambitious, because on the pan-European scale and in Latin America our development is based on commercial forces that are present locally on each of the target markets,” he adds.
In 2016, Groupama AM was ranked nineteenth* among asset managers by inflow in Europe, and third* on the market of funds registered in France.
* Source Morningstar.