Third-party distribution: Groupama Asset Management reports net inflow of 2.5 billion since the beginning of the year
Growth of the assets under management of Groupama Asset Management is in line with the targets of the "GAM 2.022" strategic development plan officially announced at the start of the year. During the first six months of the year, the efforts towards further internationalization of the asset management range and expansion of the distribution segment acted as catalysts for inflow.
Continuing the progress of the 2016 and 2017 business years, Groupama Asset Management has maintained a dynamic rate of business from external customers: since the beginning of the year, with a net inflow of subscriptions of 2.5 billion euros. The total assets under management now stand at 103 billion euros, including 22.6 billion in third-party distribution (figures for 31 July 2018).
This favourable trend, despite a market environment that is more uncertain than during the first half-year, is in line with the ambitions of Groupama AM, as stated in its new strategic plan, GAM 2.022, unveiled at the beginning of the year. This trend is founded on two strong pillars, namely the development of distribution capacity and the expansion of our range of services.
“We wish to capitalize on the diversity of expertise that constitutes our identity, being simultaneously specialists in insurance management, a key player in retirement savings and a partner of reference for third-party distributors,” declares Philippe Setbon, CEO of Groupama AM. “We are seeking to conceive the solutions that are best adapted both to the needs of our parent company, Groupama, as its historic asset manager, and to the requirements of a third-party customer base consisting of institutional investors and distributors,” he adds
Vigorous inflow in the distribution segment
In terms of asset classes, inflow during the first six months has been sustained by both our money-market expertise and our expertise in equity and convertibles, with net inflow in these two fields of 2.6 billion and 400 million euros respectively. By contrast fixed-income solutions have declined (with inflow down 600 million), under conditions that are globally less promising for the fixed-income markets.
Internationalization of the company’s asset management activities continues to bear fruit, as witnessed by the fact that out of the total 2.5 billion net inflow, 1.2 comes from French customers and 1.3 from international customers.
Groupama AM is also maintaining strong growth in the distribution segment, which represents 1.1 billion of the inflow based in France. Moreover, the partnership established with Groupama Gan Vie, via USF – l’Unité de Solutions Financières– is boosting the rapid growth in sales of unit-linked insurance plans, with net inflow of 417 million euros since the start of the year.
“Much more than a distribution channel, this partnership is strategic: we offer consulting services in the construction of allocation profiles, while also sharing a knowledge of the retail investor market with the group. This is a key advantage in attaining our growth targets for this customer segment,” explains Philippe Setbon.
Organizational projects in support of growth
Groupama AM has implemented and completed several organizational and structural projects over the last few quarters, to provide more effective and efficient support to the company’s growth targets. Successful integration of the SimCorp Dimension software suite has consolidated the technological and data systems architecture of Groupama AM, in particular front and middle office operations, to ensure better agility in the management of risks and operational costs.
At the same time, Groupiama AM has participated, as founding shareholder, alongside other asset management companies, in the development of IZNES, a blockchain-based platform that globalizes a major proportion of subscription processing operations. The first steps in benchmarking the Groupama AM mutual funds (UCITS) on the platform are in progress.
Finally, Groupama AM has modified its organization, conferring the responsibility for ESG strategy to Marie-Pierre Peillon, Head of Research, and responsibility for ESG integration to Aurélie de Barochez. Through these appointments, Groupama AM intends to maintain its strong culture in extra-financial research, in order to deepen the integration of ESG criteria in its investment decisions.
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