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Indosuez benefits from Amundi partnership with fund sales up

Indosuez benefits from Amundi partnership with fund sales up

A strong partnership with sister firm Amundi Asset Management has seen Indosuez Wealth Management’s fund penetration rate swell by 50% since January, the Asia head of markets and investment solutions has revealed.

Amundi and Indosuez are both subsidiaries of the Credit Agricole Group. Similar to other private banks in the region, Indosuez Wealth Management is encouraging clients to allow professionals to manage money on their behalf through multiple channels.

‘I guess we’ve seen the debate for years about whether Asian clients like funds, discretionary mandates or advisory, and especially, whether they want to pay for advice. I think delegation is the best way to describe it. Delegation is getting a lot more traction and we see that especially in the funds space,’ Arjan de Boer told Citywire Asia.

Two funds managed by Amundi have done the trick this year – the Indosuez Emerging Market Bond Portfolio 2020 and the Amundi Singapore Income Plus fund.

The former, which is a closed-ended Luxembourg-domiciled fund investing in US dollar-denominated emerging market debt was launched in February. It pays out 4% per annum and all bonds held in the fund mature by 2020 or earlier. The fund size is approximately $110 million.

The Amundi Singapore Income Plus fund was launched in August and made exclusive to Indosuez clients in the first two weeks. The open-ended fund has two tranches, aiming to provide income and long term capital appreciation in Singapore dollars by investing primarily in debt securities.

Approximately 50% of the fund invests in Singapore dollar-denominated debt securities issued by governments, agencies, quasi-governments, supra-nationals and corporate issuers globally. Non-Singaporean dollar debt is hedged back to the Singapore dollar.
Indosuez’s non-resident Indian clientele has played a significant role in subscriptions into the funds, according to sources.

‘In equity markets that are toppish and where there’s more [political and central bank] uncertainty, absolute return funds give clients peace of mind,’ said de Boer, adding that he would like to see more demand for discretionary mandates this year.

‘I think it is fair to say that we would have been expecting more from discretionary portfolio management and that’s something that we have addressed organisationally, especially in light of our six mandates that range from conservative to more aggressive, and an absolute return mandate, which have all outperformed benchmark this year,’ he explained.

The French private bank recently appointed former Asia advisory chief Grizelda Lee as head of discretionary portfolio management.

Looking ahead, the executive is counting on the Pioneer-Amundi deal to further boost the private bank’s fund penetration rate. Announced in 2016, the acquisition by Amundi was completed in July, creating an asset management giant that manages $1.3 trillion globally.

‘This means access to ever more professionals covering more sectors and geographies. It's important to realise though this deal has been realised only very recently so the fruits lie in the future rather than the present,’ de Boer noted.

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