November 2017

EDITORIAL: A quiet revolution

Nick-FitzpatrickThe french funds industry is one of the most dynamic in Europe. Led by a sleek regulator and an active trade body, the industry has created initiatives around distribution and fintech – and even had the audacity to try to attract more firms away from London!

Put simply, Paris is a front-office competitor to the City and has a middle- and back-office engine to make Dublin and Luxembourg blink.

If the French industry has a weakness, though, it is money market funds. Large outflows from this category hit France hard. In September, France saw a net €12 billion in total fund outflows (mainly from cash funds) when most other countries’ fund flows were net positive.

Firms have had to create more products in recent years or risk losing those clients unhappy about cash funds with low interest rates.

More offerings, from equities to illiquid assets, have emerged. In our report, Funds Europe talks to some of the key players in asset management, as well as in asset servicing, where excitement about new technologies is high.

Nick Fitzpatrick is Group Editor at Funds Europe

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