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% and 49.96%, 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.
The deal will make Fund Channel one of the leading European players in the field of logistical support for fund distribution. 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 20 billion euros.
CAAM wants to leverage the agreement between the two firms in order to speed up Fund Channel's development. Commenting, Jean-Paul Mazoyer, Head of Development for CAAM Group, said: "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 added: "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, commented: "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". Charlotte Dennery, CEO of FundQuest, added: "This agreement gives our clients a unique opportunity to take advantage of Fund Channel's unrivalled technological services and to access a broader array of services".
About Fund Channel
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, personal financial planning platforms, etc. 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.
Fund Channel enables clients to grow their fund distribution business in a streamlined operational and legal environment, while partner management companies gain much greater visibility on the source of subscriptions and redemptions. Clearly positioned and fully transparent, Fund Channel respects the balance of interests between industry players and responds precisely to the concerns currently facing institutional distributors and asset managers.
About Crédit Agricole Asset Management Group (CAAM Group)
With €453.1 billion total assets under management as at 30 June 2009 (1) and 2,217 employees, including 539 investment professionals dedicated to portfolio management, CAAM Group is the 11th largest world's asset manager(2). It is also N°1 in Europe (3) and N°1 in France (4) in mutual funds. CAAM offers a comprehensive range of products to retail investors, institutions, corporate accounts and third-party distributors.
CAAM Group is present in more than 20 countries around the world (Europe, Asia-Pacific, North America, the Middle East and North Africa).
(1) Global Investor - data as at June 2008, issued in September 2008
(2) Lipper - Mutual Funds registered in Europe, June 2009
(3) Europerformance, Mutual funds, June 2009
About BNP Investment Partners
BNP Paribas Investment Partners (www.bnpparibas-ip.com) brings together the full palette of asset management expertise of the BNP Paribas group. Through a unique platform that offers immediate and simplified access to a broad range of specialist Partner companies, BNP Paribas Investment Partners has become a leader among the multi-specialist asset managers. At 30 June 2009, assets under management amounted to €339 billion*, nearly half of which was managed for institutional clients. With 2,600 professionals serving clients in 70 countries, BNP Paribas Investment Partners draws on over half a century of asset management experience and has seen ten years of steady growth through acquisitions and joint-ventures. FundQuest is the multi-management specialist of BNP Paribas Investment Partners. With teams of analysts and portfolio managers based in Boston, London and Paris, FundQuest covers all of the world's top multi-management markets. FundQuest gives its customers access to the expertise of specialist portfolio managers around the world and a wide range of investment solutions.
* assets under advice included