Third-party asset management – 2018: Groupama AM reports net inflow of 1.420 billion euros
Despite an adverse market context, Groupama Asset Management has maintained steady gains in 2018: the net inflow of subscriptions from its third-party distribution business has attained 1.420 billion euros. Development of the company's range of funds in the distribution and international segment has played its full role in the diversification of sources of growth.
Year after year, the third-party distribution business of Groupama Asset Management has continued to develop at a sustained pace. For example, the net inflow of subscriptions from external customers reached 1.420 billion euros by the end last year, bringing the total third-party assets under management to 20.5 billion euros (on 31 December 2018, compared to 19.8 billion on 31 December 2017).
Overall, the total assets under management, combining the assets managed on behalf of third parties and the assets managed on behalf of Groupama, stood at 99.4 billion euros*.
These robust results – obtained in a market environment characterized by a resurgence of volatility and risk aversion on the part of investors – are essentially due to two management segments that fully played their role as sources of growth, in line with the aims of the GAM 2.022 strategic plan – namely the distribution and international segments.
In geographical terms, Latin America and Spain contributed almost 950 million euros to net inflow, compared to almost 640 million for Italy. Globally, the distribution segment accounted for one billion euros in net subscription inflow.
Almost 37% of the third-party assets under management come from international clients.
Popular preference for conviction-based and niche management styles
“In 2018, the asset management industry in France experienced a contraction of the institutional segment, in particular in the field of fixed-income asset management. Our efforts to diversify our sources of growth and to develop our activity on the third-party distribution market gave the necessary resilience to our business. Our partnership with Groupama Gan Vie, via USF (Unité de Solutions Financières) provided a foundation for marketing our funds in the field of unit-linked insurance plans, with net inflow of 414 million euros in 2018,” explains Jean-Marie Catala, Deputy CEO of Groupama Asset Management
In terms of strategies and asset classes, conviction-based management styles and high value-added solutions in niche segments have sparked the interest of investors. For example, the equity and convertibles strategies, in particular the Avenir and G Fund European Convertible Bonds fund ranges, made significant contributions to the net inflow (accounting for 326 million euros) and to the economic results of Groupama AM.
“As part of the GAM 2.022 plan, we aim to reach critical mass in our assets under management and to ensure our long-term organic growth. We plan to accelerate the sale of investment solutions to professionals in distribution and private investors. We also hope to maintain our market share in the institutional segment, a target group with which we have a long-standing natural affinity,” affirms Philippe Setbon, CEO of Groupama Asset Management.
“In 2019, we will also be concentrating our efforts along 3 key channels:
- continuing the deployment of our ESG strategy, with the ambition of establishing a transversal, cross-disciplinary approach common to each management team,
- integration of alternative financial and extra-financial data in our investment processes,
- industrialization of our profession, in particular via automation and the use of blockchain,
These innovations are unavoidable today if we are to remain competitive in an asset management industry that is exposed to numerous transformations,” concludes Philippe Setbon.
*Data on 31 December 2018.
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 – website: www.groupama-am.com