In their annual rankings of French asset management companies' capacity to produce alpha, EDHEC and EuroPerformance have revealed that both the frequency of alpha and the average alpha generated by French asset managers have fallen in comparison with 2007.

Average alpha dropped from 2.98% to 2.50%, a decline that may be attributed in part to the behaviour of small-cap stocks. Small-cap stocks, which in France have a large role in the production of alpha, fell over the second half of 2007, just as broad-based indices did.

Overall, levels of alpha generated by French funds dropped especially in France, but also in emerging markets, in Asia (excluding Japan), and in European sector funds. Average alpha rose however for funds in International markets and in Japan.

The winner of the 2008 edition is HSBC Private Bank France with a score of 1.52%, resulting from 53.2% of its selected funds generating significantly positive alpha and an average alpha of 2.89%. MMA Finance, with a score of 1.43%, takes second place after improving from eighth position last year. The biggest jump in this year's edition was from State Street Global Advisors France. The firm moved up sixteen places in the rankings to third.

Style-factor analysis shows that, compared to last year, there has been a clear reduction in portfolio exposure to small-cap and mid-cap stocks. These stocks, the major sources of alpha in the French, European, and euro-zone markets, likewise account for smaller shares of instruments invested in Japan. Another reason can be found in the large current falls in the stock markets, in the wake of the turbulence experienced by the shares of financial companies. As the shares of these companies make up a large share of Value-type indices, 2007 has seen a tilt towards Growth-style.

Contact:

For more information about this operation or to receive the Alpha League Table 2008 for France, please contact: Carolyn Essid

Tel.: +33 (0)4 93 18 78 24 - E-mail: carolyn.essid@edhec-risk.com