Simplicity outpaces complexity at Lyxor

Ice Cream conesPlain vanilla is proving to be the 'flavour of the year' at Lyxor Asset Management, a Paris-based investment manager with products ranging from the simple to the complex.

Between January and June, the Societe Generale-owned investment manager increased its exchange-traded fund (ETF) assets by 14% – easily outpacing performance in its more exotic business lines. Alternative investments saw 3% growth and Lyxor only describes its structured investments and active quant lines as “stable” in its latest quarterly business report.

ETF inflows totaled €2.5 billion – the second largest inflows in Europe, according to Lyxor – and were mainly in emerging market equities and European single-country funds exposed to Italy, the UK and Spain.

Lyxor’s assets under management overall increased 7% since the end of 2013 to stand at €86 billion by June 30.

The outperformance of the ETF division compared to Lyxor’s alternatives business – which includes hedge funds – comes despite a record year for hedge funds across the board,  with stock market performance and inflows taking assets over €2 trillion.

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