SocGen Reshuffle: Lyxor Management Change

After less than two years, the chief executive officer of Lyxor is leaving the €75 billion French asset management company. Ines de Dinechin was also made chairman of Lyxor in June 2013. She was a long time fixture at Lyxor and her departure is notable as yet another high profile exit by a prominent member of the company. They plan to fill the position of CEO with Lionel Paquin. Since 2007, Paquin has held a number of senior roles with Lyxor.

A spokesperson for Lyxor has stated that de Dinechin’s, or any other executive’s, exit is not an indication that the company needs or is going to alter any planned strategies, adamantly insisting none of the departures is an indication the company suffers from internal problems. He also added that the company felt de Dinechin’s tenure was “very successful.”

Owned by Société Générale, Lyxor is a substantial exchange traded fund business. Lyxor has been hounded by speculation that their owner could sell its ETF arm, which consists of €31.2 billion in assets. Without commenting on the executive turnaround, Société Générale has publicly stated they have no plans of selling Lyxor.

Besides de Dinechin’s departure, Lyxor also lost its chairman, company mainstay Alain Dubois. He left the company under a cloud of rumors involving conflict over strategy with de Dinechin. Dubois has since joined the ranks at MSCI. Also, Claus Hein was the company’s former head of ETFs for the United Kingdom, Latin America and Nordic region. He walked away in June of 2013. Add to this Simon Klein and Nizam Hamid, the head and deputy head, respectively, of Lyxor’s ETF business in Europe. Both departed the company in late 2012. Hamid moved over to the FTSE group. Klein went to Deutsche Bank.

Addressing institutional investor concerns about all the high profile departures, the spokesperson said, “We fully understand that this is a legitimate question, but no matter how high the turnover, the results demonstrate the strength of our business.” He added, “There are no problems with respect to the company’s atmosphere or business activity.”

Société Générale published its first reports of Lyxor’s position as a standalone entity. It showed that assets under the company’s management increased over the last year by €5 billion to €80 billion. Analysts have considered these findings to be the result of positive net inflows. This is most likely due to positive performance and newly launched funds. Lyxor saw revenues increase 8.6 percent to €214 million over the last year.

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