As part of Funds Europe’s annual survey of third-party fund administrators, Arnaud Claudon of BNP Paribas Securities Services answered questions on M&A, fund management priorities and Brexit.
Have you made any acquisition in the past two to three years and what were the drivers?
In 2018, we acquired Janus Henderson Investors’ middle and back-office operations in the US, making us one of the top-ten fund administrators in the US.
In 2019, we took a minority stake in the capital of fintech AssetMetrix to expand and digitalise our services to private capital clients and investors
In 2020, we lifted out BlackRock’s back-office operations in Mexico, securing a 22% market share and a perfect position to pursue our growth
Our global fund business now covers all major markets in the world, vehicle types and asset classes, enabling us to accompany our clients wherever they do business.
What ramifications have you seen in the wake of the Woodford fund collapse and the role of the fund administrator?
We see a growing trend in supporting asset managers’ boards, managers and compliance officers with an ever-wider scope and more detailed drill-down of data to closely monitor their funds
Whether through acquisition or organic development, where is the most resource focused at present in the development of your business? We employ more resources on organic growth, given the large scope and complexity of our business
In your view, what should be the top one or two operational priorities for fund management firms now, and why?
With cost pressure expected to remain high, asset managers should look to harmonise their operating model and reassess outsourcing opportunities, consolidating providers across markets and products where appropriate.
Have you seen any notable shifts in appetite for clients launching product in particular domiciles in the past, say, two years and what were the drivers? Also, have you won any new mandates over the past year and where is new business coming from?
Generally speaking, our asset manager clients are looking to rationalise their offering, reducing the number of fund domiciles and fund structures on offer in order to manage costs and product complexity.
The domiciles of choice remain Luxembourg and Ireland and these are being reinforced.We are also seeing increasing interest in APAC, most notably in China to tap into the growing investor base in the country. It’s never been easier to distribute into China and both traditional and alternative asset managers are waking up to these opportunities.
In the context of Brexit, what are you finding to be the biggest challenges to fund clients (whether UK or European) and how are you helping them?
Fund clients need to carefully assess the location of their investor base and adjust their UK offering to their UK-based investors.
For EU-based asset managers with EU fund ranges, this may in some cases result in the creation of a UK-specific fund range for UK investors, and vice versa. As a truly global firm, we are offering our clients services in nearly 20 jurisdictions, including the UK, Ireland and Luxembourg and can accommodate all solutions that help asset managers develop their competitive edge.
The directory may be viewed here and the survey here.
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