Third-party distribution – 2017: Groupama AM is continuing its strategic repositioning, with net inflow of 1.9 billion euros
The global assets under management of Groupama Asset Management increased by 3 billion euros in 2017, reaching a total of 99.8 billion euros (on 31 December 2017). As in 2016, third party distribution business was dynamic, with a net inflow of 1.9 billion euros from external clients.
Groupama Asset Management continued to benefit from the strategic choices of its previous development plan for 2014-2017. Diversification of target groups and internationalization of the products offered are two major development pillars of the asset management company, which also retains its key historic role as asset manager of its parent company Groupama.
The net inflow of subscriptions from external customers has attained 1.9 billion euros, bringing the total third-party assets under management to 19.8 billion euros. In terms of asset class strategies, fixed-income management has again benefited from significant net inflow, despite an overall market that was decreasingly favourable to fixed-income products. The equities and convertibles management teams of Groupama AM also attracted the interest of investors, with a net subscription inflow of 1.4 billion euros.
By contrast, money market management suffered outflow of 1 billion euros, due to the context of negative interest rates. Meanwhile, diversified management also had negative flow of 500 million euros.
“We are maintaining a very dynamic rate of inflow. Our constantly renewed efforts to optimize our product mix have been rewarded. investors continue to opt for the most promising strategies in terms of alpha generation, diversification and decorrelation,” affirms Thierry Goudin, Development Manager.
The diversification of customer segments undertaken over the last few years has especially been reflected in a net inflow of 500 million euros from distribution professionals in France. This segment represents a major relay for growth. “Our aim is to develop this relatively recent target group for Groupama AM even further. The new surge in inflow of unit-linked life insurance plans acts as a catalyst in this respect.The partnership that we have established with Groupama Gan Vie should further reinforce these trends,” explains Thierry Goudin.
2017, the year that confirmed our international development
Beyond the French market, Groupama registered net inflow of 1.5 billion euros in international subscriptions. Here too, the distribution segment increased its contribution to inflow, especially in Italy and Spain, where Groupama AM expanded its market shares through the commercial activity of its local teams (subsidiary in Italy and branch office in Madrid). “For Groupama AM, Italy was an early lever of development in the institutional investor segment. Today, this target group is no longer exclusive: we have diversified our positioning and have opened the marketing and sale of our products to distribution, under the coordination of our new office in Milan,” explains Jean-Marie Catala, Deputy CEO.
Additionally, Groupama AM is continuing its development in Latin America, a region addressed in particular through the intermediary of TPM (Third Party Marketers), where the company has won two new tenders for management mandates conferred by Chilean and Peruvian pension funds.
In total, 32% of the third-party assets under management come from international customers.
“Our methodical search for new sources of growth is integral to our new GAM 2022 strategic plan and is fully aligned with the aims of our parent company Groupama. Our ambition is to exceed the critical mass of assets under management in each target segment and to ensure our long-term organic growth, which has already been consolidated over the last few years,” says Philippe Setbon, CEO.
“Whether in the segment of institutional investors, especially in the insurance world, where Groupama AM has a natural positioning through traditional affinity, or the segment of distribution professionals, we remain extremely attentive to the needs of our clients. Their requirements are no longer confined to the generation of pure financial performance but now also focus on the ability to propose customized solutions and services in response to the regulatory and technological changes that they are facing. That is why we intend to continue conceiving and refining innovative solutions offering high added value,” concludes Philippe Setbon.
This document is for information purposes only. Groupama Asset Management and its subsidiaries are not liable for any modification, distortion or forgery of this document. The information contained in this publication is based on sources that we consider to be reliable, but we do not guarantee its accuracy completeness, validity or relevance. Edited by Groupama Asset Management – Headquarters: 25 rue de la ville l’Evêque, 75008 Paris –