Natixis IM CEO Philippe Setbon speaking to journalists in Paris on Thursday. Photo by Natixis.
Natixis IM CEO Philippe Setbon speaking to journalists in Paris on Thursday. Photo by Natixis.

“Active management is back.” That was the message from Philippe Setbon, CEO of Natixis Investment Managers, at the firm’s Thought Leadership Summit in Paris on Thursday.

As the asset management arm of French banking group BPCE, Natixis IM plays a central role in the European investment landscape. In January, BPCE and Milan-based Generali announced a plan to combine their asset management activities to establish the European leader in asset management in terms of revenue and the ninth-largest player globally, with 1,900 billion euros in assets under management. 

Against this backdrop, Natixis IM posted 40 billion euros in net inflows in 2024, a record that Setbon credits to a return to normalised interest rates.

“Our business model is built for this environment, and 2024 proved that,” he said. The firm saw growth across institutional, insurance, private banking, and retail clients, including an expansion of Natixis Interépargne, its major French retirement and savings platform.

Barbell effect: Passive vs. high-conviction

Setbon was direct in his critique of the industry.

“For 20, 30 years, passive investing has dominated. Too many so-called active managers have charged active fees while delivering passive-like returns. We are not in that space.”

Natixis IM, he emphasised, is purely high-conviction across both listed and private markets. “Our DNA is conviction-driven strategies. We only invest where we have conviction.”

He described a “barbell effect,” where passive investing remains dominant at one end, while true active management thrives at the other. The “middle ground” — where funds charge active fees but mimic passive strategies — is disappearing. Natixis IM, he said, is firmly on the high-conviction side.

“Our clients do not adapt to this shift—we adapt to them.”

Private markets and tokenisation

Private assets are playing an increasing role in client portfolios, a trend Setbon expects to accelerate.

“Eighty-five percent of the world’s economy is driven by private markets,” he noted. Retail investors are also entering the space, a shift Natixis IM is supporting through its evergreen fund with Flexstone.

“Education is key,” he added. “Clients need to understand private assets, and we need to meet their expectations.”

Technology, particularly tokenisation, will be crucial in making private markets more accessible.

“Blockchain-based tokenisation can lower entry barriers for investors, making private markets more accessible and liquid. Tech is going to help investors enter private markets more efficiently. Its evolution is key to the future of asset management.”

“Our industry is one of the few where costs have risen without the ability to pass them on to clients.”

However, the shift comes with challenges. “Private assets are becoming more capital-intensive. While not as heavily regulated as banking or insurance, they will consume more and more capital over time.”

Consolidation is inevitable

The industry is facing rising costs, growing regulatory demands, and the need for localised service—all of which are fuelling ongoing consolidation.

“Our industry is one of the few where costs have risen without the ability to pass them on to clients,” Setbon said. “That’s why consolidation is happening, and it will continue.”

Institutional clients, too, are consolidating, restructuring both vertically within segments and across financial services.

“For decades, banking, insurance, and asset management were separate. Since the financial crisis, those lines have blurred. The need for capital is driving a convergence that will reshape financial services in the coming decades.”

At the same time, clients are becoming more regional, adding another layer of complexity. “Balancing global reach with strong local capabilities is costly, but necessary.”

The end of free trade as we knew it

Setbon sees deglobalisation as a defining trend.

“For 15 years, free trade has been declining. Recent moves by the US, Russia, and China are just the latest evidence.”

This shift, he argues, forces a rethink.

“Free trade was a major driver of global growth. Now, we must adapt to a world of higher inflation, higher rates, and greater risk.”

Yet, he sees a silver lining.

“For too long, zero interest rates blurred the line between good and bad economic projects. The normalisation of rates is good news—it restores discipline to capital allocation.”

Natixis IM’s growth strategy

Looking ahead, Setbon reaffirmed four strategic priorities:

  1. Adapting the distribution model – “There is room to improve how we reach and serve clients.”
  2. Strengthening investment offerings – “Private assets are key, including for high-net-worth individuals.”
  3. Improving operational efficiency – “We are centralising IT and operating services to enhance profitability.”
  4. Achieving critical scale – “We must ensure our cost structure remains competitive.”

He also highlighted the firm’s acquisition of Generali’s asset management business, calling it a growth accelerator.

“This deal is part of our answer to the industry’s rising capital needs. Discussions are ongoing, but the rationale is clear.”

Natixis seeks Dutch foothold

Alongside its European growth strategy, Natixis is specifically targeting the Netherlands. Fabrice Chemouny, head of international distribution at Natixis Investment Managers, is leading the strategic effort to establish a foothold in the Dutch asset management market. The planned merger with Generali Investments and the new Amsterdam office serve as key launchpads for this expansion.

Chemouny’s approach is nuanced and deliberate. With 25 years of industry experience, he understands that market entry is not about scale, but strategic relevance. “We’re not doing this business for being the biggest,” he emphasized in an interview with Investment Officer. “We are doing this business to support our client needs in their investments.”

The Netherlands presents a particular challenge. Unlike France’s investment-friendly landscape, the Dutch market requires a sophisticated, partnership-driven approach, Chemouny said. The vision is clear: find the right distributors who can provide deep local market understanding and complementary investment capabilities.

“We’re not going to work with everybody,” Chemouny candidly explained, highlighting Natixis’ selective strategy. 
 

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