Timothé Fuchs (Fuchs Asset Management): The Boutique Approach
By offering both a UCITS Management company and an AIFM, Fuchs Asset Management is in the same league as the big asset managers. But by design, the firm places people at the center of its business and has opted for a boutique approach focusing on enhanced “Asset Governance.” An interview with Timothé Fuchs, CEO.
Why did you create Fuchs Asset Management?
We had a clear vision that was correct at the time but is even truer today: In a world moving towards automation and industrialization, putting people at the center of your business model creates a lot of value.Regulation today is so complex and evolves so quickly that we take our clients by the hand and guide them through the investment landscape to ensure both the success of their projects and an enjoyable experience.Our team takes care of all traditional functions like risk management, investment compliance, portfolio management, AML, distribution, reporting, and so on, but our main role is to be a day-to-day partner for our clients. For many asset managers, the costs associated with managing these duties internally have become prohibitive. By working with us, they can focus on their core businesses while we take care of their regulatory obligations.
“Technically, we are an asset management company, but we specialize in Asset Governance”
Are you an asset manager like J.P. Morgan for example?
Technically, we are an asset management company and could do the same things on a smaller scale. But being a boutique by design, we focus on “Asset Governance”. Our teams make sure that the projects suggested by our clients are viable and articulate what is in the best interests of investors and best market standards. Once the strategy gets all the required green lights, we implement it. By mutualizing the very expensive and complex functions of risk, compliance, oversight, distribution, portfolio management, and reporting, we allow asset managers to benefit from our “Asset Governance” expertise to ensure that they never have to look back when their strategy is launched.
How was “Fuchs Asset Management” impacted by the fine recently imposed on “Fuchs & Associés” by the regulator?
I understand that people make a link between both firms since they have a name in common. But these entities are two different companies. “Fuchs & Associés” is managed by my father, who has always done his best to deliver best-in-class services. The regulator was not satisfied and did what it had to do. On the other hand, I created “Fuchs Asset Management” back in 2014, by myself, and the company has not been impacted by this episode at all. We are in the business of governance and compliance, so we totally understand our obligations and invest relentlessly to relieve our clients of the burden of regulation. In a way, I think that “Fuchs Asset Management” is comparable to Luxembourg: Both have clearly benefited from the successive waves of regulations over recent years. Where there is complexity there is a need for specialized experts like us and there is an opportunity to create value.