- MERGER OF TWO SPECIALISTS WITH COMPLEMENTARY SKILLS
With the growing convergence of the portfolio management techniques used by asset managers and capital markets expertise developed by corporate and investment banking groups, the proposal to merge Harewood AM and SIGMA was a logical move that aligns with the latest investor expectations in terms of liquidity, innovation and market access.
The joint venture means the two entities can support one another and combine their respective strengths to better serve their clients.
THEAM will draw in part on the SIGMA team's acknowledged expertise in index and guaranteed portfolio management, risk allocation and absolute return strategies, while Harewood AM will provide its expertise in systematic funds, the use of innovative underlying assets and funds of hedge funds.
By pooling the strengths of BNP Paribas CIB and BNP Paribas IP, THEAM benefits from the best practices of both investment banking and asset management ¡V thus offering innovation, responsiveness, transparency and security within a culture of long-term performance and solid customer relations.
- A WIDE RANGE OF INVESTMENT SOLUTIONS
The aim of the merger is to offer investment solutions that meet the needs of investor profiles across a broad spectrum of underlying assets (equities, bonds, commodities, volatility, currencies, etc.) and through the skilled application of an extensive range of investment styles. THEAM has been created to meet each investor's specific requirements. The new entity will offer four main categories of portfolio management services:
- Index management: via total or optimised cash or synthetic replication, its indexed funds offering and its EasyETF tracker funds are centred on the world's leading financial indices.
- Active systematic: based on algorithms and implemented by portfolio managers specialising in the use of arbitrage techniques, THEAM's management approach ranges from full discretionary to full systematic. It is distinctive in its predominantly quantitative component, which provides optimised access to the various asset classes.
- Guaranteed and protected management: From passive management with formulas funds to active management, THEAM offers protected or guaranteed solutions where the risky assets, or the guaranteed component, or both, are actively managed.
- Liquid alternative management: THEAM offers its internal absolute return strategies under UCITS III funds, and also selects and assembles hedge funds and managed account to create liquid and transparent portfolios.
- MAJOR AMBITIONS
With some EUR 50 billion in assets under management*, the new Partner will be a market leader both in its size and the extent of its skills. Comprising 120 investment and market professionals, THEAM will be backed by the sales forces of both BNP Paribas IP and BNP Paribas CIB - over 400 sales representatives and a current portfolio of 1 500 clients. With five domestic markets (France, Italy, Belgium, the Netherlands and Luxembourg), it will benefit from an exceptional distribution network and will be able to tap into the convergence ushered in by UCITS IV.
THEAM aims to double its AUM over the next-five years. It is also determined to develop selectively its index capability, to significantly expand its active systematic management expertise, reinforce its European leadership in guaranteed and protected products, and become an international player in liquid and transparent alternative investments. THEAM will continue to draw on BNP Paribas CIB's innovative strength and quantitative research to develop systematic strategies. The merged entity will provide global investment solutions to its European clients and aims to expand in Asia and North America.
As a new BNP Paribas IP Partner, THEAM will be chaired by Dominique Hoenn and managed by Gilles Guerin as CEO. Gilles Guerin will be assisted by Denis Panel (CIO) as Head of Investment and Structuring, and Alexandre Mojaisky (COO) as Head of Sales and Support.
THEAM will have a Supervisory Board comprising six members (three from BNP Paribas IP and three from BNP Paribas CIB) and which will be chaired by Philippe Marchessaux.
"This ambitious project, which brings together the talents and skills in both corporate and investment banking and asset management, offers a unique opportunity for investors to access a vast range of investment solutions, and I am delighted that Gilles Guerin has agreed to take the helm," said Philippe Marchessaux, CEO of BNP Paribas Investment Partners.
Yann Gerardin, Head of Global Equities and Commodity Derivatives at BNP Paribas CIB, added: "This new entity will give clients the benefit of CIB's innovation and research, combined with Asset Management's expertise in developing tailored investment solutions."
*Subject to approval of the permit applications in progress
About Gilles Guérin
Until recently, Gilles Guérin was Vice-Chairman of the Management Board of HDF Finance. He began his career in the capital markets (Commerz Financial Products) before spending 10 years in the US, where he headed up Ixis Global Associates, and was on the Board of Harris Alternatives (Chicago). Gilles has also served as CEO of AlphaSimplex, a company specialising in quantitative investment and overlay based in Cambridge, Massachusetts. Gilles Guérin is a graduate of the École Nationale Supérieure de l'Aéronautique et de l'Espace (ENSAE – Sup'Aéro) and the Ecole Polytechnique.
BNP Paribas Investment Partners
BNP Paribas Investment Partners (www.bnpparibas-ip.com) is the dedicated autonomous asset management business of the BNP Paribas Group. BNP Paribas Investment Partners offers the full range of investment management services to both institutional and retail clients around the world. Central to the way we work is the concept of partnership – both in terms of how we behave as a family of companies and our relationships with our clients. Over 800 investment professionals work across our network of some 60 investment centres, each specialising in a particular asset class or type of product. With total assets under management of EUR 546 billion (USD 740 billion) as of 31 December 2010, BNP Paribas Investment Partners is the fifth-largest asset manager in Europe and the thirteenth-largest in the world*.
* Source: BNPP IP per 31st December 2010
BNP Paribas CIB
BNP Paribas Corporate and Investment Banking employs around 20,000 people in over 50 countries and services 14,000 corporate and institutional clients worldwide.
BNP Paribas CIB excels in:
Derivatives - where it is one of the leading global players in rates, credit, forex, commodity and equity derivatives.
Capital markets - where it is one of the top European houses in both ECM and DCM (bond, securitization, convertibles and equity issuance)
Structured finance - where it is amongst the leaders in acquisition, export, project, energy and commodity finance globally.