DPAM weathers the storm; ESG shines through
August 18, 2020
- DPAM (Degroof Petercam Asset Management) publishes its business results for the first half (H1) of 2020.
- Active management proved yet again to be of added value in terms of investment performance.
- Thanks to the strong resilience of the ESG strategies at performance level, DPAM’s results have held up extremely well during the crisis.
- DPAM’s three pillars (Active. Sustainable. Research.) prove to add value to our clients.
DPAM successfully made its way through H1 2020 turbulent market conditions. Assets under Management (EUR 37.2 billion) remained relatively stable thanks to net new institutional inflows, which compensated partly the negative market impact. DPAM also witnessed overall strong performance and, for some strategies, performance was far above average.
Net new cash has been close to EUR 1 billion for H1 2020. During the first quarter, DPAM welcomed very positive inflows, both from institutional end-investors as well as from its paneuropean wholesale distribution business. In the second quarter, the company showed strong resilience followed by renewed positive inflows since May. Inflows were driven both by the international and the domestic franchise, with positive inflows from all the countries where it is active. However, Germany, Austria and Switzerland’s inflows represented above average levels.
The 2020 sales and distribution momentum is a continuation of DPAM’s evolution since 2016 , adding in excess of EUR 5 billion AuM via existing and new institutional clients.
Inflows by investment strategies were well diversified across different asset classes and themes. DPAM saw inflows both in Fixed Income and Equity. To highlight, the sustainable equity expertise has been the most successful in this regard: global, European and multi-thematic sustainable equity strategies (the latest one crossing the EUR 1 billion threshold early July).
Hugo Lasat, CEO DPAM, explains: “It has become abundantly clear that both our positioning as active manager and the track record and robustness of our sustainable strategies have been the main contributors to the company’s success throughout the last months. Indeed, these strategies managed to perform well in this often unpredictable and volatile financial environment. The first half of 2020 has not only emphasised their resilience in times of crisis, it has also shown that they are a clear and continued source of value and opportunities for our institutional clients. Based upon what we know as of date of publication, with regard to business development, the third quarter should be a continuation of what we have seen in the first half of 2020.”
DPAM’s sustainable strategies have grown by over EUR 1.5 billion since the start of 2020, and now cover a total of EUR 9.6 billion AuM. This is all the more remarkable when we compare this year’s volatile and uncertain investment environment to last year’s booming markets.
To further reflect its commitment to sustainability, DPAM has expanded its sustainable fund range over H1 2020. The US dividend equity, listed real estate and European small caps strategies will henceforth include the necessary ESG screenings in their investment process to ensure that they abide by DPAM’s rigorous standards. This commitment has also been confirmed again as DPAM just received the top A+ rating from the UN-backed Principles for Responsible Investment (UN PRI) for the fourth year in a row.