The management company wants to reduce its costs by 25% in two years and is considering 50 voluntary departures within its Parisian teams.

Matthieu Duncan, CEO of Ostrum Asset Management (formerly Natixis AM).

Ostrum Asset Management (formerly Natixis AM) is continuing its reorganization. Its managing director, Matthieu Duncan announced to employees on Tuesday that he wanted to reduce costs by 25% by the end of 2020. The austerity cure for the company – which refuses to disclose its cost / income ratio – will go through a 12% decrease in external expenses. But above all by a significant reduction in the workforce.

The company has opened a consultation procedure with the unions with a view to triggering a collective bargaining agreement (RCC). “The RCC project could give rise to fifty voluntary departures among Parisian teams by the end of 2020”, said Matthieu Duncan. This represents around 10% of the workforce on permanent contracts. At the same time, internationalization continues. “We are going to develop our credit management skills in Asia where a team is being recruited. “

Refocusing and rationalization of the offer

Two thirds of these job cuts are linked to the rationalization of the offer. “The number of portfolios (open, dedicated funds, mandates, management pockets) will decrease by 30% by 2020.” A matter of common sense for the Franco-American. “When I arrived two and a half years ago, 80% of assets under management were concentrated in 8% of portfolios. Among the remaining 92%, there are very small funds, which is not very effective and, in the end, does not benefit our customers. “

Concentrated on flagship funds, the offering will also be refocused on fundamental active management. Ostrum also intends to develop its private debt offering in real estate, infrastructure and aviation. “Alongside the Parisian teams, the company will deploy this expertise in the United States and Asia from 2019. By 2020, the management company is targeting 6 billion euros in outstanding amounts in this asset class. “

Economies of scale

The largest affiliate in the galaxy Natixis Investment Managers ultimately wants to promote the emergence of at least ten funds worth several billion euros. “Asset management is a business of economies of scale. Beyond a billion euros, the marginal profitability of a fund becomes extremely important. “

The RCC project announced on Tuesday brings the final touch to the transformation plan of the former Natixis Asset Management. The latter, which was often seen as a State within a State within the Natixis management group, is indeed on the verge of becoming a « affiliate like the others ». Its subsidiaries Mirova, Dorval, H2O and most recently Seeyond, “Will no longer be girls, they will become sisters”. In other words, they are now also subsidiaries of the umbrella structure Natixis IM (formerly NGAM).

Staff transfers to the parent company

In terms of staff, as of September 25, Ostrum AM had 550 employees (including 528 permanent contracts). On October 1, there will already be less than 370. Following the creation, at Natixis IM, of an investment solutions platform responsible for bringing together the skills of the 28 affiliates, 56 people from the “division”. investment and customer solutions ”from Ostrum will then be transferred there. On the same date, the administration of all funds in the Natixis galaxy will also be consolidated at the level of Natixis IM, which represents a transfer of 126 people. “As of October 1, all the major organizational projects of our strategic plan will be completed”, welcomes Matthieu Duncan.