Global Invest Forum 2017

Global Invest Forum 2017

The leading event in Europe for Institutional Investors and the Asset Management Industry

« A look back at 2017 edition »

With the globalisation of the asset management sector, and the necessity for institutional investors to take inspiration from best practices abroad, L’Agefi had decided to make this event much more international in 2017. 

This 16th edition of the Global Invest Forum has thus been the occasion to gather the best experts from Europe to share their experience and insights in Paris, the leading market for the asset management in Europe.

During 2 days, policymakers, regulators, and industry leaders both investors and asset managers have debated about how to adapt asset allocation and business models to the changing financial landscape.

Thanks to your support and your presence, the Global Invest Forum 2017 was a great success with 523 registrants from 16 countries including 63 international speakers sharing 20 different panels or keynotes. Among the attendees, we boast 40% of Investors and 58% of Asset Managers plus media and officials, while the non-French represented close to 25% of the total audience.

In order to push further the visibility of the event, its speakers, partners and most prominent debates’ highlights, we have the pleasure to give you access to this website. We hope these contents will be useful to you, your teams and clients. We will also ride on our media partners’ support to promote them further.

As we wish to evolve and constantly adapt our events to your expectations, I would appreciate your feedback about the Global Invest Forum 2017 and I sincerely hope that we can count on your presence for next year (registration is open on the website). 

With my best regards,

Francois Robin
Managing Director
L'AGEFI

Get a special price on your ticket until november the 11th!

    Registration 2018

Discover Programme 2017

Registration 2018

Showcase

Plenary session: Geopolitics & macroeconomy

Plenary session: Geopolitics & macroeconomy

Plenary session: Geopolitics & macroeconomy

Plenary session: Geopolitics & macroeconomy

Keynote: Brexit

Keynote: Brexit

Keynote: Brexit

Keynote: Brexit

Plenary session: Hyper regulation vs. deregulation

Plenary session: Hyper regulation vs. deregulation

Plenary session: Hyper regulation vs. deregulation

Plenary session: Hyper regulation vs. deregulation

Plenary session: Pension management

Plenary session: Pension management

Plenary session: Pension management

Plenary session: Pension management

Workshop : The new influence of ESG among institutional investors

Workshop : The new influence of ESG among institutional investors

Plenary session: Central bank policies

Plenary session: Central bank policies

Workshop: What are the winning alpha strategies in 2017?

Workshop: What are the winning alpha strategies in 2017?

Workshop A growing trend: outsourcing management

Workshop A growing trend: outsourcing management

Workshop: Infrastructure investments

Workshop: Infrastructure investments

Workshop: New hedging techniques for agile investment

Workshop: New hedging techniques for agile investment

Workshop Digitalization: evolution or revolution for the asset management industry

Workshop Digitalization: evolution or revolution for the asset management industry

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Gala dinner

Plenary session: European regulation

Plenary session: European regulation

Panel: Interest rates & inflation

Panel: Interest rates & inflation

Panel: Real assets

Panel: Real assets

Panel: Actions

Panel: Actions

Panel: Debt

Panel: Debt

Panel: Debt

Panel: Debt

Panel: ETF Smart Beta

Panel: ETF Smart Beta

Panel: Allocation

Panel: Allocation

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Atmosphere

Speakers

Alphabetical order

Mirela Agache
Mirela Agache

Mirela Agache

Deputy Chief Investment Officer

LA BANQUE POSTALE ASSET MANAGEMENT
Oscar Arce
Oscar Arce

Oscar Arce

Associate Director General of Economics and Research

BANK OF SPAIN
Eric Bertrand
Eric Bertrand

Eric Bertrand

Head of Fixed Income and Multi-Asset Strategies

OFI ASSET MANAGEMENT
Jean-Charles Bertrand
Jean-Charles Bertrand

Jean-Charles Bertrand

Head of Multi-Assets

HSBC GLOBAL ASSET MANAGEMENT
Christophe Besson
Christophe Besson

Christophe Besson

Head of Equities, Quantitative Management and Asset Management

CM-CIC ASSET MANAGEMENT
Magnus Billing
Magnus Billing

Magnus Billing

Chief Executive Officer

ALECTA
Thierry Brevet
Thierry Brevet

Thierry Brevet

General Manager

THE WEST OF ENGLAND SHIP OWNERS MUTUAL INSURANCE ASSOCIATION
Philippe Brossard
Philippe Brossard

Philippe Brossard

Chief Economist

AG2R LA MONDIALE
Richard Bruyère
Richard Bruyère

Richard Bruyère

Managing Partner

INDEFI
Chris Cummings
Chris Cummings

Chris Cummings

Chief Executive Officer

THE INVESTMENT ASSOCIATION
Jean-Marc Daniel
Jean-Marc Daniel

Jean-Marc Daniel

Professor

ESCP EUROPE
Laurent Deborde
Laurent Deborde

Laurent Deborde

Financial Investments Division - Head of Innovation

CAISSE DES DÉPÔTS
Gaëtan Delculée
Gaëtan Delculée

Gaëtan Delculée

Global Head of ETF, Indexing & Smart Beta Sales

AMUNDI
Thibaud de Cherisey
Thibaud de Cherisey

Thibaud de Cherisey

Head of Continental Europe Distribution

INVESCO POWERSHARES
Martine de Fréminville
Martine de Fréminville

Martine de Fréminville

Director Head of Fixed Income Investments

GROUPE PRÉVOIR
Jan de Koning
Jan de Koning

Jan de Koning

Client Portfolio Manager Quant Equities

ROBECO
Céline Deroux
Céline Deroux

Céline Deroux

Fixed Income Strategist

CANDRIAM
Bernard Descreux
Bernard Descreux

Bernard Descreux

Head of Asset Management

EDF
Clémence Droin
Clémence Droin

Clémence Droin

Project Manager

INDEFI
Pierre-Maxime Duminil
Pierre-Maxime Duminil

Pierre-Maxime Duminil

Director

CAVAMAC
Charles Dupont
Charles Dupont

Charles Dupont

Head of Infrastructure Finance

SCHRODERS
Carsten Eckert
Carsten Eckert

Carsten Eckert

Chief Executive Officer

INSTICUBE – PFPP RESEARCH PROGRAMME
Kevin Egan
Kevin Egan

Kevin Egan

Credit Research and Senior Portfolio Manager, Invesco Fixed Income – Bank Loans

INVESCO
Pierre Ernst
Pierre Ernst

Pierre Ernst

Member of the Group Strategic Committee, COO

CANDRIAM
Marek Evison
Marek Evison

Marek Evison

Head of the WG Legal and Home Affairs

EUROPEAN PARLIAMENT
Arnaud Faller
Arnaud Faller

Arnaud Faller

Deputy CEO, Chief Investment Officer

CPR ASSET MANAGEMENT
Nadia Filali
Nadia Filali

Nadia Filali

Head of Blockchain Programmes and Lead of LaBChain

CAISSE DES DEPOTS
Nicolas Forest
Nicolas Forest

Nicolas Forest

Global Head of fixed income

CANDRIAM
Gilles Garnier
Gilles Garnier

Gilles Garnier

Chief Investment Officer

PRO BTP
Ludovic Gauthier
Ludovic Gauthier

Ludovic Gauthier

Head of IDLab Artificial Intelligence & Robotics

BNP PARIBAS SECURITIES SERVICES
Olivier Gour
Olivier Gour

Olivier Gour

Head of Listed Equities Investment

CRÉDIT AGRICOLE ASSURANCES
Hervé Guez
Hervé Guez

Hervé Guez

Director, Global Head of Research, Deputy CIO

MIROVA, an affiliate of NATIXIS GLOBAL ASSET MANAGEMENT
Torbjörn Hamnmark
Torbjörn Hamnmark

Torbjörn Hamnmark

Head of Strategic Asset Allocation

TREDJE AP-FONDEN (AP3), The third Swedish National Pension Fund
Olivier Héreil
Olivier Héreil

Olivier Héreil

Chief Investment Officer, Deputy CEO

BNP PARIBAS CARDIF
Jose Luis Jimenez
Jose Luis Jimenez

Jose Luis Jimenez

Chief Investment Officer

MAPFRE
Alain Krief
Alain Krief

Alain Krief

Head of Fixed Income & Convertibles

ODDO BHF ASSET MANAGEMENT SAS
Caroline Le Meaux
Caroline Le Meaux

Caroline Le Meaux

Head of Delegated Management

IRCANTEC
Agnès Lossi
Agnès Lossi

Agnès Lossi

Partner

INDEFI
Elena Manola-Bonthond
Elena Manola-Bonthond

Elena Manola-Bonthond

Head of Investments, CIO

CERN PENSION FUND
Antoine Maspétiol
Antoine Maspétiol

Antoine Maspétiol

Head of Private Debt France

AVIVA INVESTORS
Gregg McClymont
Gregg McClymont

Gregg McClymont

Head of Retirement Savings

ABERDEEN STANDARD INVESTMENTS
Martin Merlin
Martin Merlin

Martin Merlin

Director DG Fisma – Financial Stability and Capital Markets

EUROPEAN COMMISSION
Gilles Moëc
Gilles Moëc

Gilles Moëc

Chief European Economist

BANK OF AMERICA MERRILL LYNCH
Erick Muller
Erick Muller

Erick Muller

Director of Products & Investment Strategies

MUZINICH & CO
Emmanuelle Nasse-Bridier
Emmanuelle Nasse-Bridier

Emmanuelle Nasse-Bridier

Group Chief Credit Officer, Group Investment & ALM

AXA GROUP
Emmanuel Parmentier
Emmanuel Parmentier

Emmanuel Parmentier

Partner

INDEFI
Yves Perrier
Yves Perrier

Yves Perrier

Chief Executive Officer

AMUNDI
Allan Polack
Allan Polack

Allan Polack

Group Chief Executive Officer

PFA PENSION
Joël Prohin
Joël Prohin

Joël Prohin

Head of Portfolio Management

GROUPE CAISSE DES DEPOTS
Fiona Reynolds
Fiona Reynolds

Fiona Reynolds

Managing Director

PRI
Verena Ross
Verena Ross

Verena Ross

Executive Director

ESMA
Jean-Rémy Roulet
Jean-Rémy Roulet

Jean-Rémy Roulet

Director

CAISSES DE COMPENSATION DU BÂTIMENT
Olivier Rousseau
Olivier Rousseau

Olivier Rousseau

Member of the Executive Board

FONDS DE RÉSERVE POUR LES RETRAITES
Roberta Rudelli
Roberta Rudelli

Roberta Rudelli

Head of Fund Selection

GRUPPO UNICREDIT
Georg Schuh
Georg Schuh

Georg Schuh

CIO EMEA and Member of the Management Board

DEUTSCHE ASSET MANAGEMENT INTERNATIONAL GMBH
Alexander Schindler
Alexander Schindler

Alexander Schindler

Former President

EFAMA
Etienne Stofer
Etienne Stofer

Etienne Stofer

Director

CRPN
Matthias Seewald
Matthias Seewald

Matthias Seewald

Chief Investment Officer

ALLIANZ FRANCE
Robert Taylor
Robert Taylor

Robert Taylor

Head of Investment Management

FINANCIAL CONDUCT AUTHORITY
Bridget Uku
Bridget Uku

Bridget Uku

Investment Manager

UK LOCAL AUTHORITY PENSION FUND
Isabelle Vaillant
Isabelle Vaillant

Isabelle Vaillant

Director of Regulation

EBA
Wim Vermeir
Wim Vermeir

Wim Vermeir

Chief Investment Officer

AG INSURANCE
Etienne Vincent
Etienne Vincent

Etienne Vincent

Head of Global Quantitative Management

BNP PARIBAS ASSET MANAGEMENT
Dan Waters
Dan Waters

Dan Waters

Managing Director

ICI GLOBAL
Philippe Weber
Philippe Weber

Philippe Weber

Co-Head of Research and Strategy

CPR ASSET MANAGEMENT

Special Report

By editorial office of L'AGEFI

Sources of return are drying up

Torn between a resurgence in growth, low inflation, and shifts in monetary policies, investors are turning towards risky assets

FOR THE TIME BEING, everything is going well. The Goldilocks scenario – a market environment combining growth, low inflation and low volatility – is playing out in full. “The economy hasn’t been this strong in 10 years”, says Vincent Juvyns, a JPMorgan AM strategist. “This global and synchronous growth is a real surprise”, adds Nicolas Chaput, co-chief investment officer (CIO) at Oddo BHF AM. Growth reached an annualised pace of 2.2 % in the euro zone in the second quarter. The recovery is on track in emerging markets, with Russia and Brazil pulling out of recession. This is helping to offset volatility in US and Japanese indicators. “True, growth is not especially strong but it is above potential in several regions”, adds Philippe Müller, a UBS strategist. Moreover, PMI manufacturing and service surveys are at highs in several countries. “This is a good sign for the coming months”, says Juvyns, who forecasts global real growth between 3.5 % and 4 % this year and sees no risk of recession any time soon.
“In the extremely promising environment of solid growth and lack of inflation in the global economy, the markets are likely to focus on central bank rhetoric, particularly from the Fed and the ECB”, says Raphaël Gallardo, a multi-asset-class strategist at Natixis AM, and particularly as regards when they plan to shift their ultra-accommodating policy. “These shifts are unlikely to come as a surprise to the markets”, says Gaëlle Malléjac, head of active strategies at Groupama AM. The central banks flag their intensions abundantly so as not to take the markets by surprise. “Their gradual approach is unlikely to engender high volatility”, according to economists at Lazard Frères Gestion (LFG). In Gallardo’s view, this timing of the shift is not without consequence, as the withdrawal of central bank liquidity that has helped stave off deflation, comes at a time when the global economy could stall. ”The dollar’s weakness offers new life in the short term to a US growth cycle and a bull market that is running out of steam (with stretched valuations and abnormally low volatility) but credit statistics are already pointing to a cyclical slowdown, which could be exacerbated by a renewed surge by the dollar in the fourth quarter.”.

Through their accommodating policies, central banks have transferred volatility from equity and bond markets to currencies. Many investors have been caught wrong-footed by the steep depreciation in the dollar, especially vs. the euro. The 6 % rally in the euro is raising eyebrows “This may have happened a little fast, given the differential in short-term rates”, according to LFG economists, with impacts on asset valuations. “Swings on the forex market could continue to reshuffle the cards for investors in the coming months”, says Gallardo.

FULL STEAM AHEAD ON THE EQUITY MARKETS

"This favourable economic environment suggests a bullish stance on equities but without a specific risk on a particular market", says Juvyns, who prefers equities to corporate bonds, as they offer higher yields in Europe than high yield (3.5% vs. 2.7%), especially as the market is being supported by earnings prospects. Earnings are expected to rise this year by 13.5 % on a worldwide basis. “Global growth is at a high since 2010 and is likely to lend support to earnings and to share prices. As long as earnings remain solid, the equity markets will remain solid”, adds the strategists at Bank of America Merrill Lynch, who are bullish on emerging markets, Asia in particular. The strategists believe that equity markets in the euro zone and Japan could once again move up as soon as the dollar turns back up. “The equity markets are still attractive in comparison to other asset classes and to their absolute valuations, because interest rates are low. This will last as long as rate hikes are made slowly and under control and as long as earnings improve”, says Müller. While euro zone, Japanese and emerging equities are attractive in relative terms, the US market is at a high with a Shiller price/earnings (P/E) ratio (calculated over 10 years) of 30 times in the case of the S&P 500. “Wall Street has exceeded this threshold only twice: in 1929 and 2001”, noted Craig MacKenzie, a senior investment strategist at Aberdeen AM. Most of this overvaluation is being driven by the tech sector. “Our indicators suggest that Wall Street is expensive”, says Michaël Aflalo, chief investment officer of BFT IM, which has decided to reduce its exposure to US equities. “The problem in the Goldilocks scenarios is that all markets are becoming expensive, not just equities. Corporate bonds are also less attractive, high yield in particular”, said the Aberdeen AM strategist. Sources of returns are drying up.

AN INSUFFICIENT RISK-RETURN IN CORPORATE BONDS

“We no longer expect any further tightening in risk premiums, despite the trend improvement in fundamentals and the steady decline in default rates, as the ECB’s announcement that it is slowing its asset purchases will provide less support for credit”, says Gaëlle Malléjac. At 110 basis points (bp), spreads are very narrow in euro investment grade. While Groupama AM is sticking to its allocation to the asset class, it is focused on short maturities and financial bonds, mainly subordinate ones. High yield offers even less of a cushion. “High yield spreads are approaching the lows of the previous cycle”, adds the LFG managers, who also prefer financial bonds. The spread is now just 275bp and the yield, 2.7 %! To find returns, investors are turning to bonds that, for the time being, are benefiting from the weak dollar and the slow pace of Fed normalisation. Emerging debt in local currency offers a 6 % yield. Emerging equities are the best-performing of any asset classes, with a 26 % gain (in dollars).

MORE INTEREST-RATE PROTECTION

“Sovereign bond yields are excessively low and unconnected from economic fundamentals”, says Gaëlle Malléjac. She expects yields to trend upward, driven by reassuring inflation data but, most of all, central bank support, to 2.7 % for the US 10-year yield (2.3 % currently) and 0.7 % for the Bund (vs. 0.5 %). The market is aware of the risks, but is pretending to ignore them, as inflation is still low. “And yet, the Fed is going to shrink its balance sheet at the same pace at which it expanded it”, Juvyns says. “The fear is a chain reaction on the bond markets.”

Central banks are big players on these markets. The Fed, ECB, Bank of Japan and Bank of England have together injected 12,540 billion dollars in liquidity since the Lehman failure. Moreover, the market is pricing in a single Fed rate hike this year, in December, followed by a single one next year. Fed members, in contrast, expect three in 2018 (to 2 %).“The closer we get go the neutral rate around 2 % the more nervous investors will be. The reason for this is that, unlike in the past, when the neutral rate was 4 %, a 25 bp Fed Funds rate hike will not have the same impact”, says Müller, and that will engender volatility on this market.” “We are adopting a contrarian view on US interest rates”, says Michaël Aflalo. “We prefer inflation-linked bonds, as the market is not pricing in a significant increase in inflation.”
Despite this Goldilocks situation in risky assets, caution is in order, given the coming political agenda and potential geopolitical events. “The biggest risk is geopolitical, North Korea in particular. Although a US intervention seems unlikely, the situation is unstable to say the least”, according to BoA ML’s strategists. “The market has roared straight ahead, but there are many uncertainties between Trump, Macron and North Korea”, says Michaël Aflalo. Investors are facing a dilemma. They have to be invested, since the economy is doing so well, while staying careful as volatility could return at any time, as was the case this summer with the tensions between the US and North Korea. The solution: “We protect our portfolios with options”, adds the CIO of BFT IM. This approach is all the more relevant now as these strategies are cheaper, given the low level of volatility.

Written by Xavier Diaz


An expanding private corporate debt market

Investors are willing to go smaller and riskier for returns

THE EUROP MARKET will stay small this year. “Volumes are a little lower than expected”, says Frédéric Catelon, Managing Director Global Capital Markets at SG CIB. “An estimated almost €2 billion in deals were signed in the first half of this year.” This would still amount to a slight increase, given that the above figures are just an estimate, due to the heavier proportion of private debt. “There has been a slight upturn in deals this years, driven in part by the refinancing of the first EuroPPs brought out five years ago”, according to Muriel Nahmias, of Redbridge. For example, Lebronze Alloys has just issued a €20 million EuroPP, which drew the same investors as the 2015 issue of an identical sum by Tikehau IM on behalf of the Novo and Zencap funds. “This year’s €20 million private placement contract has been adjusted to reflect changes that have occurred in the company and should help accelerate its development, explains Alice de Jouffroy, administrative and financial head of the group’s holding company. The funds will help fund recurring maintenance and innovation investments, along with acquisitions.”
The market is still being squeezed by the low number of deals compared to the money available. More and more insurance companies and asset managers are getting in on the action, with several rounds of fundraising. The Novo fund is said to be preparing its third round of fundraising. “There is a lot of liquidity that cannot find a place to invest, says Cyril Kammoun, head of investment banking at Degroof Petercam in France. We are in regular contact with about 20 EuroPP funds, each one with €200 million or €300 million euros. These are French funds and, increasingly, UK funds, such as BlueBay, and American ones. Private equity firms have also set up their debt funds, including Ardian and HIG White Horse.”

A NEW VEHICLE

A new vehicle has been created that should also bring in investors. “The organisme de financement spécialisé (OFS, or specialised funding entity) is well suited to the institutional investors that it is meant for so they can finance the economy, points out Thibault de Saint Priest, managing director of Acofi. Its use will be more flexible than FCT securitisation funds, as its will be eligible for the benefits accruing under the AIFMD directive, such as the European passport regime and the option of honouring redemption requests. Another advantage is that OFS entities may issue debt securities, which some investors prefer to co-ownership shares.”
In reaction to the current environment, investors are taking a look at smaller targets. “We have begun to fund smaller companies. In 2012 we targeted companies with revenues of more than € 1 billion. Today we are looking at companies with as little as €10 million in EBITDA. We remain alert to risk, and the targeted returns will be based on our credit analysis”, explains Benoît Faguer, head of private corporate debt at Aviva Investors France. Investing the raised funds is an initial objective. Enhancing returns is a second objective. “The market has become more diversified”, Muriel Nahmias acknowledges. “In simple terms, alongside long-standing EuroPPs for to large investment grade companies with coupons approximately between 2 % and 2.5 %, investors are also seeking additional returns via funding of mid-sized companies at 2.50 % to 3.50 % and, increasingly, small caps, with coupons between 3.50 % and 4.50 %, sometimes more.”
Even midcap funds are beginning to be abundant. Muzinich has focused on private debt over the past five years, particularly SMEs (€5 to €50 million in EBITDA) and is now in the process of boosting its resources. “Alongside four local funds that are in the investment phase, we have just wrapped up our first closing of €180 million in the pan-European fund, with an objective of €400 million to €500 million to invest in European small and mid-sized companies”, says Sandrine Richard, co-head of the pan- European fund and in charge of Muzinich’s private debt in France. The group has a team of 22 specialists in Europe. “All in all, these funds have already raised more than €950 million, with unit investments of between €5 and €20 million, and 27 deals have been done thus far”, claims Anne Petit, head of Muzinich’s office in Paris.

OPENNESS

The market is opening up to even smaller deals, ranging from €1 to €8 million with around 5 years maturity. “The miniPP market has expanded greatly. We have identified five to seven players that have raised funds on this segment, including Bpifrance”, Cyril Kammoun emphasises. “There are several hundred eligible companies with recurring needs. It’s all a matter of educating their managers and shareholders financially.” Meanwhile, some investors are taking an interest in slightly lower-quality credit profiles. ”The maximum leverage was about 3 when EuroPPs first got started, but investors are willing to look at levels of 3.5 or even 4 or 4.5, says Frédéric Catelon. Investors are no longer afraid of looking at companies under LBOs with corporate type profiles.”Either they set up special funds or they open an ad hoc subfund in an existing fund. Alongside senior debt, mezzanine and unitranche are becoming options. “Our pan-European fund will focus on first-tier senior and unitranche debt”, says Sandrine Richard, with an expected return of between 7 % and 9 %.

Written by Frédérique Garrouste


The Norwegian sovereign wealth fund revisits its model

Norges Bank IM, the powerful sovereign fund, plans to shift its asset allocations. Major institutional investors are paying close attention.

The Norwegian sovereign wealth fund is changing course. The world’s largest pension fund, which has just surpassed 1.000 billion dollars in assets, wrote to the Norwegian finance ministry on 1 September to request approval for a change in its portfolio allocation. Norges feels that while diversification is a good idea in equities, it doesn’t work in bonds. In its letter, Norges Bank IM proposes overhauling its fixed-income and credit strategies and expanding its equity allocation. Broadly speaking, bonds will no longer be chosen from 23 different currencies but just the three strongest – the euro, dollar and pound. Norges also proposes to no longer invest in corporate bonds, as it feels that they require too much buying and selling, and the resulting turnover incurs heavy friction costs. And Norges will avoid maturities over 10 years in order to keep volatility under control. On the whole, these plans would result in a steep decline in its bond allocation (currently 32.4 % of the total allocation) and a shift towards equities. Norges plans to raise its target equity weighting from 65 % of NAV as of the end of June to a 60-70 % range. Keep in mind that the equity allocation achieved a 5.53 % return in the first quarter, and 3.37 % in the second quarter. These gains no doubt emboldened Norges Bank IM in its decision.
Could this decision cause other institutional investors to shift their allocations? “There is no doubt that the finance ministry’s response will be followed closely on trading floors”, says François Jubin, president of WiseAM.

Olivier de Larouzière, head of fixed-income investments at Natixis AM understands Norges’ planned changes perfectly. “Norges must lock in an income stream in anticipation of shrinking oil & gas income. It must scale back financial risk and focus on the most liquid investments.” In the euro zone, liquidity has continued to dry up, due to the regulatory-driven shrinking in banks’ balance sheets and the ECB’s Corporate Sector Purchase Programme (CSPP). “Interest rates are clearly too low in absolute terms, he says. Sovereign bond yields are reacting more to financial flows and the possibility of investing in derivatives than to the outlook for an upturn in long-term inflation. Distortion and volatility have increased. Norges is therefore overweighting the core of the yield curve, which will remain less volatile and more directly linked to monetary policies.”

WHEN YOU CANNOT SEE THE WOOD FOR THE TREES

At ERAFP, a supplemental publicsector retirement fund and the only French-style pension fund, the real “Norges” news is its expanded equity allocation. “Fed by oil & gas revenue, this fund whose mission is to distribute a perpetual annuity of 3 %, has clearly chosen to invest in economic growth”, says Philippe Desfossés, the head of ERAFP, which is required by law to limit its equity exposure to 40 %. “The authorities continue to believe that equity investments are too volatile and therefore dangerous. But nowadays, if you want to capture the risk premium on a company’s credit rating, it’s better to do so through its shares than through its bonds, as rising interest rates will automatically cancel out the remuneration of the risk taken”. Ircantec, 80 % of whose portfolio is subject to requests for proposals, certainly agrees. It plans to lower its weighting of sovereign bonds from 30 % to 10 % and to raise its equity allocation to 40 %. Norges, meanwhile, awaits its government’s decision.

Written by Valérie Riochet


British asset managers are dreading what comes after Brexit

They fear tougher principles of delegation for the sector.

THUS FAR, BREXIT SEEMED TO HAVE MOSTLY spared the asset management sector, in contrast to banking and insurance. But things have changed somewhat since the summer due to the release of two opinions published by ESMA, the European Securities and Markets Authority.
In late May Esma issued general principles with which national regulators must align themselves for the purpose of regulatory convergence. The European regulator is especially concerned about the creation of “letter-boxes“ in a post-Brexit continental Europe. In the runup to the UK’s exit from the EU, British companies in all financial sectors will be tempted to set up shell companies while keeping most of their activities in the UK. “ESMA’s opinion aims to harmonise procedures and consistency of approaches in supervision at the European Union level, explains Véronique de Hemmer, head of regulatory affairs at Clifford Chance. The rules are nothing new. It’s just that everyone is paying closer attention with Brexit coming up.“

CONTROVERSY

In mid-July the European regulator reiterated its message while elaborating on it in a series of three documents by type of asset management. In the document on investment management, one passage triggered controversy. “Delegation to non-EU entities could make oversight and supervision of the delegated functions more difficult…? National competent authorities should therefore give special consideration to such delegation arrangements and be satisfied that their implementation is justified based on objective reasons despite the additional risks which may arise from them“, the opinion said. In the UK this passage was interpreted by some as an attempt to alter the principle of delegation. It happens that this principle is a hallmark of asset management in Europe: about 90 % of assets under management in the EU uses delegation. And while most of these funds are registered in Dublin or Luxembourg, portfolios are managed almost everywhere in the world, including a large portion in London.

No wonder, says an ESMA spokesperson, that “the British asset management industry is keeping a close eye on this opinion, which affects the use of delegation“. Even so, he denies that the principle of delegation is being altered: “this sentence merely highlights the possibility of additional challenges in the supervision of delegated roles when they are carried out outside the European Union“, he explains. Beyond the matter of the text’s wording, UK asset managers are currently seeking certainties, even as negotiations drag along between the European Union and the UK.
As managing director of ICI Global, a global association representing the interests of regulated funds, Dan Waters hopes that the rules applying to UCITS will continue to guarantee their success. “Investors choose UCITS funds for their solid and flexible regulatory framework, he explains. Rules on the principle of delegation are at the core of this framework. Through delegation rules, global fund platforms offer true economies of scale and access to investors. Obviously, all this must be held onto.“ However, a post-Brexit regulatory status quo is far from a given. “Keep in mind that what currently exists in intra-European delegation and outsourcing cannot last post-Brexit, says Frédérick Lacroix, a partner at Clifford Chance. Conditions surrounding delegation or outsourcing will inevitably be more restrictive, as for any outside country.“ Even at this stage, this does not sound good to UK asset managers.

Written by Stéphanie Salti, London

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Moderated by Philippe Mudry, Chief Editor, L'AGEFI

• Georg Schuh, Chief Investment Officer EMEA and Member of the Management Board, DEUTSCHE ASSET MANAGEMENT
• Gilles Moëc, Chief European Economist, BANK OF AMERICA MERRILL LYNCH
• Oscar Arce, Associate General Director for Economics and Research, BANK OF SPAIN

Geopolitics & macroeconomy

Moderated by Philippe Mudry, Chief Editor, L'AGEFI • Georg Schuh, Chief Investment Officer EMEA and Member of the Management Board, DEUTSCHE ASSET MANAGEMENT • Gilles Moëc, Chief European Economist, BANK OF AMERICA MERRILL LYNCH • Oscar Arce, Associate General Director for Economics and Research, BANK OF SPAIN
Brexit
Brexit

Moderated by Stéphanie Salti, Journalist, L'AGEFI

• Chris Cummings, CEO, THE INVESTMENT ASSOCIATION
• Marek Evison, Head of WG Legal and Home Affairs, EUROPEAN PARLIAMENT

Brexit

Moderated by Stéphanie Salti, Journalist, L'AGEFI • Chris Cummings, CEO, THE INVESTMENT ASSOCIATION • Marek Evison, Head of WG Legal and Home Affairs, EUROPEAN PARLIAMENT
Hyper regulation vs. deregulation
Hyper regulation vs. deregulation

Moderated by Annick Masounave, Journalist, L'AGEFI HEBDO

• Yves Perrier, CEO, AMUNDI
• Alexandre Schindler, Former President, EFAMA
• Dan Waters, Managing Director, ICI GLOBAL

Hyper regulation vs. deregulation

Moderated by Annick Masounave, Journalist, L'AGEFI HEBDO • Yves Perrier, CEO, AMUNDI • Alexandre Schindler, Former President, EFAMA • Dan Waters, Managing Director, ICI GLOBAL
« The policies of the central banks are at a turning point »
« The policies of the central banks are at a turning point »

Interview Eric Bertrand, Head of Fixed Income and Multi-Asset Strategies, OFI ASSET MANAGEMENT

« The policies of the central banks are at a turning point »

Interview Eric Bertrand, Head of Fixed Income and Multi-Asset Strategies, OFI ASSET MANAGEMENT
« Loans are safer than high yield bonds and equally liquid-2017 »
« Loans are safer than high yield bonds and equally liquid-2017 »

Interview Kevin Egan, Credit Research and Senior Portfolio Manager, Invesco Fixed Income - Bank Loans, INVESCO

« Loans are safer than high yield bonds and equally liquid-2017 »

Interview Kevin Egan, Credit Research and Senior Portfolio Manager, Invesco Fixed Income - Bank Loans, INVESCO

MIFID 2 « We need an another big push over the next few weeks to make sure that we really get there for the 2nd of january »

Interview Verena Ross, Executive Director, ESMA
« The rise of populism is the highest risk for financial outcomes and investor returns »
« The rise of populism is the highest risk for financial outcomes and investor returns »

Interview Georg Schuh, CIO EMEA and Member of the Management Board, DEUTSCHE ASSET MANAGEMENT INTERNATIONAL GMBH

« The rise of populism is the highest risk for financial outcomes and investor returns »

Interview Georg Schuh, CIO EMEA and Member of the Management Board, DEUTSCHE ASSET MANAGEMENT INTERNATIONAL GMBH
« Towards PRI 2.0 »
« Towards PRI 2.0 »

Interview Fiona Reynolds, Managing Director, PRI

« Towards PRI 2.0 »

Interview Fiona Reynolds, Managing Director, PRI

Interview Jose Luiz Jimenez, Chief Investment Officer – MAPFRE

Interview Laurent Deborde, Head of Innovation of the Financial Investment Division - CAISSE DES DÉPÔTS

Awards 2017

Best Woman Manager

Isabelle Bourcier

Global Head of ETF and Index Solutions
BNP PARIBAS ASSET MANAGEMENT

Best Institutional Investor

Philippe MIMRAN

Managing Director
EDF

Best Fund Manager

Vincent Chailley

Head of investments
H20 AM

Best Head of Asset Management

Pascale Auclair

Head of investments
LA FRANÇAISE AM

Best ETF Provider

LYXOR ETF

Best Asset Manager

TIKEHAU IM

Media & Sponsors

Media

Sponsors

  • AMUNDI ASSET MANAGEMENT
    AMUNDI ASSET MANAGEMENT
    AMUNDI ASSET MANAGEMENT
    Publicly traded since November 2015, Amundi is the largest European Asset Manager in terms of AUM(*), with over €1.1 trillion worldwide. Headquartered in Paris, France, Amundi has seven investment hubs located in the world’s key financial centres, and offers a combination of research depth and market experience that has earned the confidence of its clients. Amundi is the trusted partner of 100 million retail clients, 1,000 institutional clients and 1,000 distributors in more than 30 countries, and designs innovative, high-performing products and services for these types of clients tailored specifically to their needs and risk profile. Go to amundi.com for more information or to find an Amundi office near you.
  • Aberdeen Standard Investments is a leading global asset manager dedicated to creating long-term value for clients. To achieve this, we offer a comprehensive range of investment capabilities, as well as the highest levels of service. Overall, we manage worldwide assets worth £583 billion* on behalf of clients in 80 countries. In managing these assets, we employ over 1,000 investment professionals and provide client support from 50 client relationship offices globally. The Aberdeen Standard Investments brand was created in connection with the merger of Aberdeen Asset Management PLC and Standard Life Plc on 14 August 2017 to form Standard Life Aberdeen plc. *Standard Life AUM/AUA data as at 30 June 2017, Aberdeen Asset Management AUM data as at 31 March 2017, all other data as at 30 June 2017
  • AMUNDI ASSET MANAGEMENT ETF INDEXING SMART BETA
    AMUNDI ASSET MANAGEMENT ETF INDEXING SMART BETA
    AMUNDI ASSET MANAGEMENT ETF INDEXING SMART BETA
    Publicly traded since November 2015, Amundi is the largest European Asset Manager in terms of AUM(*), with over €1.1 trillion worldwide. Headquartered in Paris, France, Amundi has seven investment hubs located in the world’s key financial centres, and offers a combination of research depth and market experience that has earned the confidence of its clients. Amundi is the trusted partner of 100 million retail clients, 1,000 institutional clients and 1,000 distributors in more than 30 countries, and designs innovative, high-performing products and services for these types of clients tailored specifically to their needs and risk profile. Go to amundi.com for more information or to find an Amundi office near you.
  • DEUTSCHE ASSET MANAGEMENT
    DEUTSCHE ASSET MANAGEMENT
    DEUTSCHE ASSET MANAGEMENT
    With EUR 723 billion of assets under management (as of March 31, 2017), Deutsche Asset Management is one of the world’s leading investment management organizations. Deutsche AM offers individuals and institutions traditional and alternative investments across all major asset classes. Products range from pooled funds to highly customized portfolios for a wide range of investors. They include active and passive funds, institutional mandates, and structured products. Our advisers and investment specialists are dedicated to creating asset management solutions for every client need and every risk, return, and liquidity preference.
  • AVIVA INVESTORS
    AVIVA INVESTORS
    AVIVA INVESTORS
    Aviva Investors is the trade name of the asset management arm of the Aviva Group, one of the largest global insurers. Represented in fifteen countries and with more than 1300 employees, Aviva Investors had € 403 billion of assets under management at 31/12/2016 in a wide range of products and investment solutions. Aviva Investors offers the advantages of a global organisation combined with local expertise. This organisational set-up enables us to exploit both global and local opportunities to serve our clients, through solid investment performances and innovative products. The local teams are supported by high quality services provided by global teams based worldwide. In Paris, Aviva Investors France, with more than € 104 billion of assets under management at 31/12/2016, aims to build long-term relationships with the institutional world in France.
  • BNP PARIBAS
    BNP PARIBAS
    BNP PARIBAS
    BNP Paribas Securities Services is a multi-asset servicing specialist with local expertise in 36 markets around the world and a global reach covering 95 markets. This extensive network enables us to provide our institutional investor clients with the connectivity and local knowledge they need to navigate change in a fast-moving world. As of 31 December 2016, BNP Paribas Securities Services had USD 9,070 trillion in assets under custody, USD 2,067 trillion in assets under administration, 10,166 funds administered and over 10,080 employees.
  • CANDRIAM INVESTORS GROUP
    CANDRIAM INVESTORS GROUP
    CANDRIAM INVESTORS GROUP
    Candriam Investors Group is a leading pan-European multi-specialist asset manager with a 20-year track record and a team of more than 500 experienced professionals. Managing about €107.2 bln AUM at the end of March 2017, Candriam has established management centres in Luxembourg, Paris, Brussels and London, and has experienced client relationship managers covering Continental Europe, the UK, the USA, the Middle East and Australia. Its investment solutions cover five key areas: fixed income, equities, absolute performance strategies, sustainable investments and advanced asset allocation. Through conviction-driven investment solutions, Candriam has earned a reputation for delivering innovation and strong performance to a long-standing, diversified client base in over 20 countries. Candriam Investors Group is a New York Life Company. New York Life Investments(1) ranks among the world’s largest asset managers(2). (1) New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary New York Life Investment Management LLC. New York Life Investment Management LLC is a wholly-owned indirect subsidiary of New York Life Insurance Company (2) Source: New York Life Investments ranked 24th among the world’s largest money managers within Pensions & Investments, May 30, 2016. Rankings are based on total worldwide institutional assets under management for the year-end 2015. New York Life Investments assets include assets of affiliated investment advisors.
  • CPR ASSET MANAGEMENT
    CPR ASSET MANAGEMENT
    CPR ASSET MANAGEMENT
  • CM-CIC ASSET MANAGEMENT
    CM-CIC ASSET MANAGEMENT
    CM-CIC ASSET MANAGEMENT
  • INVESCO
    INVESCO
    INVESCO
    Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. We are privileged to manage more than $835 billion in assets on behalf of clients worldwide (as at March 31, 2017) We have: Specialised investment teams managing investments across a comprehensive range of asset classes, investment styles and geographies More than 6,500 employees focused on client needs across the globe Proximity to our clients with an on-the-ground presence in more than 24 countries Solid financials, investment grade debt rating, and strong balance sheet.
  • HSBC GLOBAL ASSET MANAGEMENT
    HSBC GLOBAL ASSET MANAGEMENT
    HSBC GLOBAL ASSET MANAGEMENT
    HSBC Global Asset Management, the investment management business of the HSBC Group, invests on behalf of HSBC’s worldwide customer base of retail and private clients, intermediaries, corporates and institutions through both segregated accounts and pooled funds. Our purpose is to connect our clients to global investment opportunities in equities, fixed income, multi-asset, alternatives and liquidity by leveraging the expertise offered by our team of over 600 investment professionals and 2,300 employees based in 26 countries around the world. We manage assets of more than USD428 billion (at 31 March 2017) on behalf of our clients located in Europe, the Asia-Pacific region, North America, Latin America and the Middle East. Our approach is founded on robust risk management, a disciplined investment process implemented with judgement and skill to deliver sustainable performance, and a combination of our global experience with deep local insights – helping clients capture more opportunities at home and abroad. We are in a uniquely strong position to make fully-informed decisions that help our clients meet their investment goals over the long term.
  • LA BANQUE POSTALE ASSET MANAGEMENT
    LA BANQUE POSTALE ASSET MANAGEMENT
    LA BANQUE POSTALE ASSET MANAGEMENT
    La Banque Postale Asset Management, which is a 70% subsidiary of La Banque Postale, 25% owned by Aegon AM and 5% owned by Malakoff Médéric, manages the majority of La Banque Postale funds proposed to retail and wealth-management clients. LBPAM also proposes specific investment solutions adapted to institutional investors, mutual funds, major companies and third-party retailers, through open-ended funds, dedicated funds and discretionary investment management mandates. LBPAM is a multi-expert manager, specialising in credit investments and asset and liability management solutions. It also enjoys a strong reputation in European equities and quantitative and debt fund management. With EUR 179.2 billion AUM at 31 December 2016 and a portfolio composed of almost 400 major accounts, LBPAM is the 4th largest asset management company in France.
  • MUZINICH & CO
    MUZINICH & CO
    MUZINICH & CO
    Muzinich & Co is a privately owned institutional-focused investment firm specialising in public and private corporate credit with approximately USD28.0 billion (as at 31/12/2016) of assets under management. The firm was founded in New York in 1988 and also has offices in London, Frankfurt, Madrid, Manchester, Milan, Paris and Zurich. As a corporate credit manager, we offer expertise across the full spectrum including high yield, crossover investment grade, senior loans and middle market loans. A global perspective prevails through dedicated US, European and Emerging Markets teams.
  • NATIXIS GLOBAL ASSET MANAGEMENT
    NATIXIS GLOBAL ASSET MANAGEMENT
    NATIXIS GLOBAL ASSET MANAGEMENT
    Natixis Global Asset Management serves thoughtful investment professionals with more insightful ways to understand and manage risk. Through our Durable Portfolio Construction® approach, we help them construct more strategic portfolios that seek to produce better outcomes in today’s unpredictable markets. We draw from deep investor and industry insights and partner closely with our clients to put objective data behind the discussion. Natixis Global Asset Management is ranked among the world’s largest asset management firms.1 Uniting over 20 specialized investment managers globally ($895.6 billion AUM2), we bring a diverse range of solutions tailored to meet to every strategic challenge. From insight to action, Natixis helps our clients better serve their own with more durable portfolios. 1 Cerulli Quantitative Update: Global Markets 2016 ranked Natixis Global Asset Management, S.A. as the 16th largest asset manager in the world based on assets under management as of December 31, 2015. 2 Net asset value as of March 31, 2017. Assets under management (AUM) may include assets for which non-regulatory AUM services are provided. Non-regulatory AUM includes assets which do not fall within the SEC’s definition of ‘regulatory AUM’ in Form ADV, Part 1.
  • ODDO BHF ASSET MANAGEMENT
    ODDO BHF ASSET MANAGEMENT
    ODDO BHF ASSET MANAGEMENT
  • OFI ASSET MANAGEMENT
    OFI ASSET MANAGEMENT
    OFI ASSET MANAGEMENT
    Incorporated in 1971, OFI Asset Management is one of the most important French asset management companies with 68 billion Euros in assets under management. The Group has honed its expertise in both collective management and discretionary management, in listed and unlisted assets, and offers a range of solutions and services tailored to a diverse range of investor profiles. OFI Asset Management is one of the biggest independent SRI Asset Manager on the French market and is backed by two large institutional groups, Macif and Matmut, that provide a solid shareholder base and is anchored in the social economy through partnerships with members of the French mutual insurance bodies.
  • POWERSHARES SOURCE
    POWERSHARES SOURCE
    POWERSHARES SOURCE
    We are a forward-thinking fund provider that wants you to get more from your portfolio. We offer over 80 exchange traded funds (ETFs) in Europe, from simple funds tracking well-known indices to “smart beta” strategies that could improve performance. We focus only on ETFs, so we have the market knowledge to help you trade them efficiently too. Because we are part of Invesco, you also benefit from the ideas and expertise of one of the world’s largest independent asset managers. Whatever your investment objective, we can help you meet it.
  • ROBECO
    ROBECO
    ROBECO
    Robeco Institutional Asset Management B.V. (Robeco) is a pure play international asset manager founded in 1929. It currently has 16 offices worldwide and is headquartered in Rotterdam, the Netherlands. Through its unique integration of fundamental, sustainable and quantitative research, Robeco is able to offer both institutional and private investors an extensive selection of active investment strategies, covering a broad range of asset classes. As at 31 December 2016, Robeco had EUR 137 billion in assets under management, 70% of which were institutional. Robeco is a subsidiary of Robeco Group which had assets under management of EUR 281 billion as at 31 December 2016.
  • SCHRODERS
    SCHRODERS
    SCHRODERS
  • http://www.indefi.eu/en/
    http://www.indefi.eu/en/
    http://www.indefi.eu/en/
  • WELLS FARGO ASSET MANAGEMENT
    WELLS FARGO ASSET MANAGEMENT
    WELLS FARGO ASSET MANAGEMENT
  • CPW
  • FIDELITY INTERNATIONAL
    FIDELITY INTERNATIONAL
    FIDELITY INTERNATIONAL
  • EUROBUSINESS MEDIA
    EUROBUSINESS MEDIA
    EUROBUSINESS MEDIA

Supporting organisations

Registration 2018

Book your ticket from now on for the 2018 edition on October 11th and 12th!

Register now!