DPAM FY 2019 business results: significant growth and record net inflows for the fourth year in a row

 

• DPAM’s Assets under Management (AuM) have increased by EUR 7.5 billion (over 22%) during 2019.
• Net new institutional cash inflows of over EUR 2.1 billion make up 28% of 2019’s increase.
• The increase is evenly spread across countries and investment strategies
• Overall ESG Integration on companywide level for all actively managed investment funds
• Assets under management in sustainable strategies increased from EUR 4 billion to EUR 7.2 billion.

For the fourth year in a row, DPAM sees a significant growth in its net new cash from institutional clients.

DPAM enjoys strong, organic business-growth dynamics, which reflect its solid 3 year and 5 year investment performances, as well as its client-services culture. During 2019, DPAM saw its total AuM increase by EUR 7.48 billion (over 22%). This growth is the result of both positive market effects and positive net new cash received from institutional clients.

Of the increase from 31.8 billion at the end of December 2018 to 39.2 billion euro by 31 December 2019, over EUR 2.1 billion comes from net new cash from institutional clients, with almost 70% of the latter stemming from our international businesses.

We achieved net inflows across countries, confirming the success of DPAM’s domestic and international expansion. In terms of client segments, the pension fund segment as well as the pan-European wholesale distribution activity contributed significantly to DPAM’s growth.

We experienced growth in both fixed Income and equity, boosted by outstanding investment performances. In comparison to the overall European fund industry that saw positive flows in bond funds last year, DPAM also witnessed significant inflows in its different European and Global equity strategies. Within fixed income, the strategies which have seen the most significant inflows are Global Unconstrained, High Yield and Emerging Market Debt in local currency.

Sustainable strategies stand out as key drivers of growth, with over EUR 7.2 billion AuM across different asset classes and themes. For almost two decades, DPAM has incorporated ESG factors into its actively managed investment funds. In addition, the increase in assets in sustainable strategies (from EUR 4 billion by the end of 2018 to EUR 7.2 billion as of end 2019) aligns with DPAM’s commitment to sustainability. It is a core part of our firm’s DNA and our 19 years of experience in the field.

In 2019, we have also stepped up the promotion of the DPAM brand on the international scene.

Hugo Lasat, CEO of DPAM, is pleased with the above-average growth of DPAM’s AuM. “It is the result of a strong position reflecting DPAM’s three pillars “Active - Sustainable - Research”. Our considerable investments in buy-side research to support our active management, as well as our 19 years of experience in sustainable investments have been rewarded by our institutional clients. We continue to build on the long-lasting relationships with our existing partners and are seeing a growing number of new clients, which explains our significant growth.

 

We are convinced that sustainable and responsible investments are a structural trend which is here to stay. This conviction pushes us to continually invest in resources and research. Our performance track record proves that, over the long term, a combination of sustainability and financial management adds considerable value by creating a so called “double alpha” for the client. Going forward, we will maintain our robust commitment to sustainability.”

As part of its commitment to sustainability, DPAM has been a signatory of the UN-PRI since 2011. In 2019, DPAM’s sustainability expertise received the UN-PRI’s highest rating (A+) for the third consecutive year. In addition, DPAM is also a proud supporter of the TCFD Recommendations and Climate Action 100+.

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DPAM is an independent active asset management firm and manages investment funds as well as discretionary mandates on behalf of institutional clients, for a total amount of EUR 39.2 billion, as of December 2019. DPAM is a sustainable investor, pioneer and innovative in responsible and sustainable investing. The firm integrates ESG across asset classes and themes and is also an active owner. DPAM has a strong focus on research with a proprietary in-house fundamental and quantitative analyst team, supporting the firm's asset management activities.