Third-party asset management / Groupama Asset Management reports net inflow of 2.8 billion for the year-to-date
Between 1 January and 31 August 2020, Groupama Asset Management registered net inflow of 2,8 billion euros from its external customers. These excellent results were obtained despite the difficult market context caused by the impact of the coronavirus health crisis. Our expert teams in the long-term management of "risky" assets were particularly sought after, both by customers in France and internationally.
The net inflow of subscriptions from our third-party distribution business attained 2.8 billion euros, including 560 million from ‘our international activity.
This sustained growth has helped to raise the company’s total assets under management to 108.4 billion euros (compared to 105.1 on 31 December 2019). Third-party distribution represents 26.7billion euros under management, including 9.8billion from international customers.
Dynamic development on different market segments
In detail, inflow was positive over all asset classes, despite the uncertain context marked by the health crisis. The management teams focusing on long-term assets, especially equity, convertible bonds, corporate bonds and diversified investments, are largely responsible for this increase in net inflow, with 570 million euros of new subscriptions (essentially via the G Fund World [R]Evolutions, Groupama, Crédit Euro and Groupama Equilibre funds). Meanwhile, money-market products initially entered a phase of volatility, with increased redemptions at the peak of the health crisis, before a dynamic return of subscriptions at the end of the first half-year.
In terms of customer segmentation, inflow of 930 million euros came from institutional investors, 774 million euros from corporate customers, and 571 million euros from professionals in distribution, in France and French-speaking Europe.
At the same time, the networks of the Groupama Group have remained natural and fundamental avenues for the growth of the asset management company, with almost 640 million euros of net subscriptions (excluding money-market products). The increase in inflow from unit-linked life insurance plans proposed by the networks has been maintained: the offer of solutions in the form of unit-linked products for private investors has channelled the inflow of subscriptions to our funds G Fund World [R]Evolutions, G Fund Future for Generations and G Fund Green Bonds.
These very encouraging results confirm the wisdom of our development strategy, which is based on diversification of the customer base and internationalization of our growth sources. The overall product mix has contributed to our inflow. Our market shares in the distribution segment are continuing to grow considerably.Jean-Marie Catala
Managing Director of Groupama AM
Supporting the economic recovery, the commitment of Groupama AM to partner with investors and business
True to its values and its DNA, Groupama AM is continuing its innovation efforts and maintaining its commitments in the context of the current economic and health crisis. Several practical initiatives have been launched this year, not only to stimulate useful investment in support of companies and the “post-COVID” economic recovery, but also to continue to affirm the underlying convictions that constitute the driving force of our teams in the field of socially responsible investment.
For example, following the meeting of the French Institutional Investors Committee on 6 July 2020, our fund G Fund World [R]Evolutions was selected as part of the ministerial ‘initiative to stimulate the funding of technological companies. This initiative is promoted by the French Ministry of Economy and Finance and the French Government Department (“Secrétariat d’État”) responsible for the Digital Economy, under the direct authority of the President of the Republic. With this fund, which is primarily invested in tech securities, Groupama AM is demonstrating its practical implication in the commitment made by 22 institutional investors to help actively fund the companies in the technology sector.
Groupama AM has also reaffirmed its ESG convictions, by progressively expanding the eligibility of its managed funds for the major ESG labels. Three historic funds have had their labels renewed, while two other funds have been newly awarded labels (Greenfin Label for G Fund Global Green Bonds, French SRI Label for G Fund Future for Generations).
Finally, Groupama AM is working on a “post-COVID” unit linked fund aimed at investing in strategic sectors, in order to address the challenges faced on coming out of the crisis. This new investment solution will be unveiled and introduced to the market in October.
These initiatives are closely linked to our commitment to work in partnership with investors, business and all the stakeholders of our financial and societal ecosystem. For us as asset managers,, the health crisis provides a formidable opportunity to commit fully to our role in funding the economy and to move forward with our with our long-term investment vision, targeting returns that are sustainable and responsible, rather than immediate, and with the aim of a fairer sharing of value. We have been expressing these convictions for almost 20 years in our ESG philosophy, which structures our entire approach.Mirela Agache Durand
CEO of Groupama AM
Data as at 31 August 2020
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