Dexia Asset Management is expanding. With the opening of a branch in Frankfurt in October 2006, Dexia AM is now heading for the German market. The fund manager's focus in Germany will be on sustainable portfolios, pension funds and funds managed according to quantitative models for institutional and private investors.
Dexia Asset Management (Dexia AM), a subsidiary of Dexia Group, and with 101.1 billion euro in assets under management one of the large asset management companies in Europe, will now be setting out to conquer the German market. 'After Spain, Italy and Scandinavia, the step towards Germany is the current highlight of our European expansion strategy and a springboard for further dynamic growth towards Central and Eastern Europe,' says Henri-Michel Tranchimand, Member of the Executive Committee of Dexia AM, at the opening of the German branch in Frankfurt.
The step into the German market is well considered and follows a meticulous assessment of customer needs, market structure and the competition. 'With investment volumes of around 1.3 trillion euros, Germany is not only one of the most attractive but also one of the most courted markets on the continent,' Tranchimand continues. 'Here you can only survive if you can prove your quality and offer a competitive range of products.'
In all some 60 funds are authorised for sale in Germany. With them Dexia AM is starting with an extensive fund universe covering a range of investment and risk classes as well as a broad geographical spread of country and sector funds via portfolios investing both in Europe and worldwide. Tranchimand considers Dexia AM to be particularly successfully established in the product segment of pension funds, funds managed according to quantitative models and in the sector of so-called Sustainable and Responsible Investments (SRI).
Opportunity Germany: growth of old-age provisions
Alongside an attractive range of funds, Dexia AM also sees opportunities in demographic change throughout Europe, which is driving demand for intelligent fund solutions. In Germany too, in recent years, the aging of the population and an increasing privatisation of old-age provision has been observed. The need for private cover in Germany was previously answered by small provident or pension funds, where the management was happy to give their reserves to professional asset managers. At the same time demand from private investors was growing for high-yield investment alternatives.
Dexia AM will target both groups in Germany. So funds for private investors should be available above all through free fund marketing and institutional distributors like banks. Institutional customers will be looked after by the German institutional sales team and specialists from the investment team. Internationally Dexia AM is particularly successful in both markets. 45.9 per cent of assets under management are invested in open funds, 49.1 per cent is managed in 391 institutional mandates, and the remainder in private mandates.
In Frankfurt the team is starting with three members of staff, and at the beginning of 2007 that number will be increased. 'With the opening of an independent branch, Dexia AM is giving all its customers a clear signal of its permanent commitment to the German market,' stresses Achim Gilbert, Head of the Frankfurt Office.
About Dexia Asset Management
Dexia Asset Management is one of the large asset management companies in Europe and a subsidiary of the Franco-Belgian Dexia Group. The asset management company itself offers a broad range of equity, bond and speciality funds and at present manages around 101.1 billion euros for private and institutional investors. In the Sustainable and Responsible Investment (SRI) segment, Dexia Asset Management is market leader in Europe, and in the Hedge Fund segment it is in the Top 5 in Europe.
Dexia Asset Management has 550 members of staff and investment centres in Brussels, Luxemburg, Paris and Sydney as well as marketing teams in Belgium, France, Luxemburg, the Netherlands, Switzerland, Italy, Spain, Scandinavia, Germany, Australia, Austria and Bahrain.