Institutional management: stores gain credit in bonds

Posted on Apr 6, 2021 at 7:00 AMUpdated Apr 6, 2021, 7:04 AM

Small is beautiful. If the adage has long been verified in equity management, where independent so-called “conviction” shops stand out, it is now extending to bond management. The giants like Amundi, which manage several hundreds of billions of euros of interest rate products, are jostled by smaller houses, shows the twentieth annual ranking of French institutional management established by the firm Amadeis and unveiled exclusively by “Les Echos “.

“In the context of very low interest rates, investors are looking for companies capable of breaking free from indices and creating value in bond management, thanks to a more dynamic management process”, explains Frédéric Pétiniot, co-founder of Amadeis. The phenomenon is relatively new. “ Until now, there has been a dichotomy between the preference for boutiques in the search for alpha in equity management, and that for large ‘vanilla’ management houses in fixed income. In this asset class, the size effect in placing orders on the market counted more than the managers’ room for maneuver ”, analyzes the managing director of the institutional consultancy firm.

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