Sergio Bindi is the managing director of Compagnie de Gestion Privée Monégasque (CGM). The company he founded seventeen years ago has just joined the AZIMUT Group.
How has the acquisition of CGM been organised by Azimut, Italy’s leading independent management company, listed on the Italian stock exchange?
In 2011 our company was growing. New partners had to be found to maintain that progress. Azimut has a much broader customer base than ours, but we share the same profession.
While a first stake was acquired in 2011, the Azimut group now owns all of our capital. AZIMUT HOLDING is a leading Italian financial group. It provides services in asset management (€44 billion assets managed at end 2016, over €50 billion at end 2017), financial consulting, insurance, brokerage, risk management etc. Its most recent convention brought together more than 2000 people in Monaco, in the presence of Mr. Jean Castellini, the Minister of Finance and Economy. That was a great honour for us.
CGM is going to progress…
Certainly, but it should be noted that the Azimut Group gives us great independence.
CGM had three partners initially: Alessandro Cavalli, Andrea Salerno and myself and Marco Farina joined us in 2006. After Azimut acquired the first stake, our company changed. From a financial company with a clientele exclusively linked to our four partners, it has diversified and strengthened the commercial team, with thirteen private bankers and four business referrers based in Monaco and the Milan subsidiary.
The two companies now manage a total of €2.6 billion in assets, including €600 million in fund management. The results are good and the holding company trusts us. 40 people now work for us in Monaco and Milan. Moreover, I would point out that in 2006, CGM became the only Monegasque management company authorised to set up a subsidiary in Italy (CGM Italia SIM SPA).
Our role is first and foremost to provide a real service for private bankers and consequently for our customers. We are equity market and bond market analysts. We manage thirteen funds, ten on Azimut platforms and three on other platforms. Twelve people are totally dedicated to managing our funds and portfolios.
Azimut has built the ‘Global Team’ platform that we participate in for the bond part. It comprises 100 funds managers, with over 70% outside Italy: in Brazil, Australia, Turkey, Dubai, Mexico, Taiwan, Shanghai, Luxembourg etc.
Another development: 65% of our customers are Italian and 25% are Monaco residents. The latter figure is tending to rise.
How can profitability be maintained with greater transparency?
You need to invest in management teams to ensure good portfolio performance and to focus on quality customer service. Azimut can do that, with a very high quality management team and a broad distribution platform for their products.
How do you see Monaco’s growth?
Monaco has incredible potential. There are established parameters for judging a country’s attractiveness: its wealth, quality of schooling, security and healthcare. Monaco comes out number one.
Many people - of all nationalities - will come here and live here. The challenge will be to find the way to acquire customers, who will certainly be very solicited.
