Xavier Parain, Deputy Secretary General of the AMF, welcomes the ability of Place de Paris to incubate and approve young management companies.
How is asset management doing in France?
The French asset management business model is working well. Place de Paris is able to incubate and approve young management companies that are starting out. There are all kinds of asset classes under management in France and a wide variety of managers. Some say that index management puts pressure on “traditional” management by taking a lot of market share, but the figures show that there is still room for the creation of new structures implementing active management. In addition, we often talk about consolidation of the sector. This remains a fundamental trend, even if the evolution is very slow and if, from one year to the next, the figures are not spectacular.
What are the remarkable trends in terms of assets under management?
There is a trend increase in the number of companies in the areas of real estate and private equity. In 2017, equity management was logically supported by the rise in the stock markets. But above all, it is necessary to underline the relative stability of monetary management, even with such low or even negative yields, the decline in outstandings seemed inevitable. In reality, money market funds remain an attractive investment medium regardless of the level of money market rates, because it is often a waiting investment that benefits from very low volatility and additional returns. compared to other monetary investments.
Should we expect to see the number of management companies approved in France increase following Brexit?
The movement is not yet visible in the 2017 figures, because management companies have less anticipated a possible establishment in continental Europe than other players such as banks for example. This is completely normal as these are structures that are much lighter and easier to relocate. It is not too late to start this type of process. The trends will probably be clearer in the 2018 and 2019 figures. In the first half of 2018, the AMF had discussions with just under a hundred foreign management companies around Brexit.