Groupama Asset Management is planning to bolster its fund offering in Latin America as it works to cement its presence in the region.
The French asset manager landed in Latin America about two years ago with one product, its small and mid-cap European equity fund Groupama Avenir Euro, managed by Citywire AAA-rated Cyrille Carrière. The firm aimed to offer a niche strategy to investors looking to diversify their equity exposure.
Now Groupama is looking to introduce its G Fund Total Return All Cap Europe strategy, managed by Pierre-Alexis Dumont, by the end of 2018, and its G-Fund European Convertible Bonds fund, managed by Jean Fauconnier, Groupama commercial director Arnaud Ganet (pictured below) said in an interview with Citywire Americas.
Investors in Latin America have ramped up their investments in Europe this year, with Chile’s six pension funds alone pouring a net $3.35 billion into equity funds from that continent since January, according to a report by Chilean firm HMC Capital.
Ganet said Groupama planned to keep working with third-party marketer Capital Strategy Partners, a Spanish firm with a Peru location, with which the French group signed an agreement in 2015.
The duo target investors in Chile, Peru and Colombia and have gathered 200 million euros ($236.2 million) in assets since entering the region.
‘When we started to look at Latin America obviously the market is quite big and developing quite fast. They are open to foreign asset managers so the market was very interesting,’ Ganet said.
‘It’s also a very nice way to diversify our clients and that’s obviously what we’re looking for. So Latin America looked like the perfect spot to go.’
Latin American institutional clients had been an initial primary focus for Groupama, which as of June 30 ran roughly 100 billion euros ($118.1 billion) in assets. However, the firm shifted its attention to private banks and family offices in June.
Groupama has soft-closed its Groupama Avenir Euro small and mid-cap strategy, which has hit 1.7 billion euros ($2 billion) in assets, to avoid hurting the strategy, Ganet said.
As a result, it has turned its attention to the G-Fund Avenir Europe, a fund with a similar strategy but focused on all of Europe instead of just the Eurozone.
Groupama's G-Fund Avenir Europe structure fits private banks and family offices better, Ganet said. For instance, the fund carries performance fees, which wealth managers are more inclined to pay than institutional investors.