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Eurizon CEO on MIFID II and the future of asset management in Europe | European CEO - YouTube
Channel: EuropeanCEOVideos
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European CEO: I'm with Tommaso Corcos, CEO
of Eurizon, to discuss the future of asset
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management in Europe.
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MiFID II comes into effect in January 2018;
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how is the asset management
industry going to change?
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Tommaso Corcos: There are certain changes
that are definitely important.
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One is product governance;
the second is further transparency;
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and the third point is the unbundling of research.
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Let me say that MiFID II runs the risk to
bring an effect on the profitability of asset
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management. And asset management companies
must answer to this challenge, becoming more
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prone to transform themselves. Not only creating
investment solutions; but giving
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a continuous, better service, to the distributors
of their own product.
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Another point that certainly is relevant for
MiFID II is the fact that the asset management
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company will be more responsible for the whole
life of the product. Also a better connection
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and stricter connection between producer and
distributors. And this is something that the
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asset management company must exploit to improve
the service that they give to the distributors
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and to the final customers.
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European CEO: So how have you been working
to prepare for this? To improve your transparency,
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your communication with your stakeholders?
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Tommaso Corcos: We've been working hard with
our distributors to prepare a template that
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will be given to the final customers in terms
of transparency. And also we're working with
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them to improve the final content that will
be given to the retail investor, or to the
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institutional investor. And so this is something
that for us has been very relevant.
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European CEO: You're exploring investment
opportunities in illiquid assets; what's driving this?
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Tommaso Corcos: We are looking to have a more
important role in sustaining the development
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of the real economy.
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As you know, the banking system is transforming
rapidly. There are more issues coming from
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the regulatory environment. And I think that
there is a gap in terms of financing to the
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long-term projects mostly, that can be covered
by companies like the asset management industry.
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I'm thinking about infrastructure projects,
I'm thinking about real estate development.
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I'm thinking also about the possibility, mostly
in markets like the Italian ones that comes
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after years of financial crisis, to work on
NPL issues, on non-performing loans.
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So this is something that asset management
companies can exploit to improve their capabilities
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of offering more products, mostly to institutional
investors more than retail ones.
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European CEO: What kind of products will you
be offering?
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Tommaso Corcos: I'm thinking about real estate
debt products, about leverage loans, about
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non-performing loans products that mostly
in countries like Italy or Spain are the types
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of products from which you can get an interesting
yield – mostly in environment like this
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in which the yield on assets are still pretty
low.
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European CEO: What else does the future hold
for Eurizon?
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Tommaso Corcos: We should be more international.
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We are the leader in Italy, we are doing very
well in China where we manage almost €80bn.
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We set up another initiative in China, in
the province of Qingdao. We bought a company
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in London, and we are very happy on how things
are evolving. We set up branches in France
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and Germany. And so this is a clear tendency
to become and be more and more international.
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And this is certainly the direction for Eurizon.
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European CEO: Tommaso, thank you very much.
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Tommaso Corcos: Paul, thank you very much.
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If you started here, go back and watch the
first half of our interview with Tommaso,
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on Eurizon's ESG strategy – so please subscribe,
or click the thumbnail to watch that. And
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for latest business, finance and strategic
insights transforming Europe, make sure your
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future includes some time at europeanceo.com
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