The post-Brexit era is pushing the London store to find distribution partners across the Channel to fuel its growth. with Greg Jones.
St James’ Street ‘profit hunter’ on the eve of his 25th birthdayand Birthday, at a crossroads. What path was chosen to ensure its continued growth, which led it to move closer in 2002 to ABN Amro Fund Managers Limited, the UK fund management entity of the ABN AMRO Group (sold to Fortis in 2008) since its inception in 1997, So to build an American AMG in its capital in 2010? It managed £10.6bn at the time and £28bn today (31 March 2022). The fallout from Brexit is forcing it to redeploy to its focus on the continent. M&A operations, strategic mergers, establishment of management companies? Artemis’ head of distribution, Greg Jones, is one of the most important cultural conundrums.
Would you say the impact of Brexit forced you out of your story?
Broken Artemis does not highlight some essential features that cannot be compromised. A culture of freedom of thought, which is reflected in our investment strategy, the absence of constraints – if not to produce absolute risk-adjusted performance – and the unwavering belief that our management teams manage their funds as they see fit Managerial authority and a pure bottom-up approach. We don’t have a CIO in the classic top-down sense. Strong alignment of interests: Manager is 40% owner of Artemis. They are stable shareholders, reinvesting their own money in the funds they manage. Finally, want to continue our growth as independently as possible. That doesn’t mean we’re not ready to welcome a new suitable partner, as we did with AMG, which owns 60% of Artemis but doesn’t have any operational role. A reliable and stable “sleep” companion.
Reinvent ourselves, yes. Not a revolution, in an evolutionary sense.
“Brexit has diversified our offer.”
What are you going to do?
We have several options to circumvent the distribution restrictions imposed on us since Brexit. One of these is to entrust an independent management company, as we do with FundRock in Luxembourg, or to contact a third-party company to distribute our funds in a country where we no longer have the right to talk to investors (such as France) ¬ or Restricted Rights – In Italy and Spain we can only meet with existing clients and not potential clients. Another more expensive option is to set up our own management company to serve Europe. The last one will be part of our tradition of hiring a management team that specializes in strategies that we don’t already have. This is the case with Kames Capital, which joined us in 2020 with an SRI and impact strategy. This less capital-requiring option could allow us to support the rise of discretionary fund managers we want to have in Europe. Whatever solution we choose, we can count on our partner AMG, and if the opportunity arises, we can fund it by mobilizing equity.
How will Brexit affect your fund’s scope?
Brexit has diversified our offer, not only adapting it to European investors, but also attracting more institutional investors than today. The latter account for less than 25% of our assets under management, with “retail” clients accounting for three-quarters. This is largely because our historical strategy of working on UK equities has been successful with private investors.
“Our efforts are also focused on developing an SRI scope that is not related to Brexit.”
As a result, we launched a series of Luxembourg funds in 2018, forecasting Brexit, replicating strategies from global, US and emerging markets, with outperformance.It’s not over yet, other funds are in the pipeline which will strengthen our bond offering – fully developed, our 2 newly recruited resourcesand Edinburgh headquarters. We will never sacrifice the way we launch private equity funds or private markets, which is primarily about cleaning the company’s balance sheet. It’s definitely not our investment philosophy, it’s part of the long term. That’s why our efforts are also focused on developing an SRI range unrelated to Brexit. This catalyst for further diversification has allowed us to respond to investor needs and our investment process has greatly facilitated our investment process. Intuitively, there is no written code, and controversial issues have been excluded while integrating sustainability. industry. In 2021, the Impact Fund labeled Article 8 was launched.
What challenges did you encounter during this redeployment phase?
Most importantly, culture: betting on external growth to align with managers with skills that complement ours, premised on a great community of values, a mindset that is compatible if not tight…a real challenge Can make us prefer organic road growth.