BNP Paribas Investment Partners has joined forces with Crédit Agricole Asset Management to create a European provider of fund distribution services.
BNP Paribas Investment Partners has joined forces with Crédit Agricole Asset Management to create a European provider of fund distribution services.
Fund Channel, a fund distribution logistical platform wholly owned by CAAM Luxembourg, is selling a stake to BNPP IP. The resulting joint venture, which will be owned 50.04 per cent and 49.96 per cent respectively by the two companies, has received the go-ahead from both the Luxembourg regulator, Commission de Surveillance du Secteur Financier, and the European Commission.
Going forward, the assets under administration for entities and external clients of the Crédit Agricole and BNP Paribas groups will be handled on the same platform.
Relying on a network of more than 75 institutional clients in Europe, Asia, the Middle East and Latin America, Fund Channel provides access to over 10,000 investment funds managed by 197 management companies, with total assets under management in excess of EUR20bn.
CAAM wants to leverage the agreement between the two firms in order to speed up Fund Channel’s development.
Jean-Paul Mazoyer, head of development for CAAM Group, says: "We are proud to sign this agreement, which should significantly improve Fund Channel’s trading capacity for the benefit of its clients".
Fund Channel managing director Guillaume Abel adds: "By strengthening Fund Channel’s position in Europe, the agreement will create marketplace opportunities for us since many institutional investors are determined to improve their organisational structure and boost their revenues."
Philippe Marchessaux, head of BNPP IP, says: "This partnership will strengthen BNP Paribas Investment Partners’ leadership in the open architecture industry, where we have built strong positions through our multi-management subsidiary FundQuest."
Set up in 2005 and with a staff of more than 35, Fund Channel offers a full range of integrated services to a clientele composed of fund distributors, multi-managers, private banks, insurance companies and personal financial planning platforms. It spans the entire logistics pipeline for fund management by negotiating and formalising pricing agreements between management companies and distributors, computing and collecting distribution fees, and reporting online to clients and also to management companies listed on the platform.
