Glasgow, London, New York, Zurich, Singapore and now… Paris. Copylab is open for business in France.
Though, admittedly, none of our staff will be too upset about the prospect of being seconded to the French capital from time to time, there’s also a sound business case for putting Copylab on the doorstep of Parisian asset managers. According to Gilles Saint Marc of Kramer Levin, the city:
- is home to the leading asset management industry in continental Europe.
- houses more than 630 asset managers, including four ranked in the global top 20 and many boutiques with specialist skills and expertise.
- manages €3.8 trillion in assets, representing 31% of assets under management in the EU27 and twice the volumes managed in Germany.
But what can Copylab actually do for asset managers in France? On one level, the same as Copylab does for asset managers in the rest of the world: help them produce top-quality investment writing and content. But for French asset managers, the ability to communicate elegantly and expertly in English also holds the promise of unlocking new markets. And here are five key reasons why French asset managers may choose to go cross-border:
Increase potential market size
Some asset managers thrive on offering niche strategies that are not necessarily available from the large players. For them, tapping international markets can make sense. Pictet, for example, was among the first to introduce theme-based funds and has successfully exported them globally.
Diversify the investor base
During challenging times for the home market, spreading the investor base across geographic zones can help asset managers mitigate the impact of outflows driven by domestic factors. Macroeconomic variables, changes in tax rules and politics are just some of the factors that can significantly influence fund flows.
Exploit existing distribution networks
Take the example of the French boutique CPR AM, a fully-owned subsidiary of Amundi. When Valérie Baudson was appointed chief executive of CPR in 2016, 96% of her clients were in France. A year later, in September 2017, 30% of inflows were from abroad, driven chiefly by CPR AM serving Amundi’s network outside France. When ties with banks or insurance companies give boutiques access to international distribution networks, poor communication can amount to sacrificing potential inflows.
Achieve economies of scale
As regulatory burdens increase and margins fall, capturing international fund flows can help asset managers reap benefits of scale at an operational level.
Exploit fund platforms’ potential
Fund distribution is changing, and platforms aimed at both retail and professional investors are increasingly popular. Many of them are international, giving asset managers new options for distributing their funds abroad.
Whatever the specific international objective, asset managers need to communicate in English to give them the edge over other players in their chosen market. Copylab, as the world’s leading investment writing and communications agency, has a track record of bringing energy and expertise to how asset managers write about markets, funds and strategies. With the opening of the Paris office, Copylab is ideally placed to help French asset managers achieve their international goals.