BNP Paribas, following a competitive tender, has implemented a mandate to provide fund administration to Equinox Fund Management (Equinox), a US alternative asset manager with more than USD1.5 billion in assets under management.
BNP Paribas administers a platform of independent fund vehicles accessed by mutual funds sponsored by Equinox. BNP Paribas’ solution captures and values trades in real-time, producing a Net Asset Valuation (NAV) on the same day. Equinox-sponsored mutual funds then use this NAV as part of the process to strike their own NAVs on a daily basis. This daily-NAV solution provides the necessary transparency required to value alternative fund investments in the regulated mutual fund marketplace.
Commenting on the services provided by BNP Paribas, Bob Enck (pictured), president and chief executive officer at Equinox, says: "The decision to invest in these vehicles was critically influenced by the fact that they were administered by a best-in-class fund administrator. BNP Paribas’ capabilities allow our mutual funds to meet the strict reporting requirements mandated in this highly regulated industry.
"Furthermore, their global credentials and world-class platform serve as powerful reassurances at a time when asset safety could not be more important."
Andrew Dougherty, head of alternative and institutional solutions at BNP Paribas Securities Services, says: "We’re pleased to have won this new mandate and see it an illustration of our commitment to US fund managers.
"Alternative managers are increasingly using mutual fund structures to offer their core alternative strategies to individual investors because the structure offers more transparency and liquidity to end investors. Whether through *40 Act Funds in the United States, UCITS in Europe, or other domiciles around the world, we are ready to support them.
*The Investment Company Act of 1940 (the "Investment Company Act") is what gives structure to the mutual fund industry. The Investment Company Act provides very strict regulations for entities which are "investment companies" such as mutual funds.”