Fixed income will be a key focus for Lyxor Asset Management next year, alongside liquidity of exchange-traded products (ETFs) and opportunities in emerging markets, according to
Arnaud Llinas, the head of ETFs and indexing.
Llinas was speaking after Lyxor, which is part of French bank Societe Generale, announced a re-organisation of its business lines.
Lyxor has grouped its investment specialists into three areas: ETFs and indexing; absolute return and solutions; and alternatives and multi-management.
While the firm currently manages €96 billion of assets globally, with its new strategy Lyxor aims for a 50% increase in assets under management (AUM) and advisory by the end of December 2018.
Llinas says liquidity and efficiency will be important areas in the coming year.
“We want to maintain quality and focus on vanilla, very liquid strategies and an insignificant spread compared to management fees,” he says.
Lyxor ETF has grown its AUM by 25% in the last two years to €38 billion and Llinas says the firm’s research is a major strength.
“We are taking our time, we may not be the first to propose something fashionable, but we are developing products based on our research and client demand,” he says.
Llinas says that fixed income will be another important focus next year, as products are adapted to suit an environment of European low yield. He also sees prospects in Asia and the Chinese fixed income market as a further area of interest.
“We are also looking at emerging markets that might not be investible today, but could be tomorrow, such as parts of Africa or Asia,” he adds.
Lyxor will continue to aim for innovation in areas such as alternative beta strategies, Llinas also says.
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