Today, CANDRIAM released its full year 2017 results and business performance, reporting continued AUM and NNC growth. The sustained growth has been driven by winning landmark RFPs, and increasing its distribution foothold in Europe and internationally.
Continued organic growth
Total AUM had reached €112.6 billion by the end of 2017, a year-over-year increase of +10.5% or €10.7 billion. CANDRIAM systematically posted double digit AUM growth over the last 4 years, amounting to €46 billion of AUM (+68%) since 2014 – of which €33 billion of Net New Cash.
Net inflows amounted to €7.1 billion. Growth was achieved notably through the signature of several major mandates, which expanded the distribution footprint in Europe and internationally. Distribution was particularly strong in France, Belgium, Italy, Spain and Switzerland.
Bond strategies proved most popular, pulling in €3 billion in Net New Cash, especially in Emerging Markets (€1 billion) and Fixed Income Credit (€500 million). Absolute Return strategies took in €700 million. Equities strategies also performed very well, with Global Equities and Emerging Markets Equities attracting more than €2 billion. The remaining €1.4 billion came from inflows in multi-assets strategies.
First external growth strategic partnership
Although the announcement came out early in 2018, CANDRIAM forged a strategic partnership with Tristan Capital Partners (“Tristan”) and acquired a 40% equity stake in the pan-European real estate specialist.
This strategic partnership with Tristan enables CANDRIAM to add real estate, a major asset class which continues to attract strong institutional investor demand, to its multi-specialist offerings.
Client-oriented product innovation
CANDRIAM strengthened its product range with the launch of new Robotics and Long/Short Strategies, as well as a Global High Yield strategy with a best-in-class approach and a Defensive Total Return strategy. CANDRIAM also launched an innovative range of ESG and Smart Beta Specialized ETF strategies, underscoring its strategy to expand into complementary expertise to further build on its diversified investment offer.
Strong investment performance across the board
By the end of 2017, almost 10% of CANDRIAM’s funds had a 5-star rating by MorningstarTM. Furthermore, with more than 81% of CANDRIAM’s traditional funds rated 3, 4, or 5-star, the company continues to have some of the most highly rated funds, well above market average of 67.5%.
European and Global equities, Global Credit and High Yield, Absolute Return, Emerging markets (equities & bonds) and CANDRIAM’s sustainable range posted strong performance across the board with several funds in the first performance quartile for 1, 3 & 5-year performance.1
These good results generated strong industry recognition: CANDRIAM gathered 38 fund performance-related awards. CANDRIAM Emerging (Debt and Equity) strategies were particularly recognized by the market.
Reinforced leadership in sustainable and responsible investments (SRI)
CANDRIAM continued to expand its product range with innovative solutions in 2017. The company deepened its responsible commitment to being a thought leader and supporting engagement activities, by building academic and business partnerships in the U.S. and in Europe.
At CANDRIAM, SRI commitment goes far beyond investment expertise. In 2017, the company launched the CANDRIAM Academy for Sustainable and Responsible Investing, an online training platform aiming to raise independent financial advisors’ awareness of the matter. The e-learning tool was launched in English and Italian, and more than 600 people already joined the training course. CANDRIAM is looking forward to further develop its Academy in 2018.
At the end of 2017, five CANDRIAM SRI funds were awarded the French government-backed SRI label, a recognition for CANDRIAM’s commitment and expertise in SRI across different asset classes and regions. The funds provide investors with a complete and transparent understanding of the Environmental (E), Social (S) and Governance (G) impacts of their investment choices thanks to dedicated reports called "Impact Factors". The reports consist of ten criteria comparing the funds to their reference index.
1As ranked by Morningstar Inc. Ratings at end of December 2017. Morningstar, Inc. All rights reserved. Some of the information contained in this document is the property of Morningstar and/or its information providers. It is given without any guarantee as to its accuracy, exhaustiveness or topicality. Its reproduction or redistribution is strictly forbidden.