BNP Paribas Asset Management has plans to roll out an open architecture, sub-advisory platform as a Luxembourg sicav.
It will offer clients third-party manager strategies and integrate BNPP AM’s investment guidelines and sustainability requirements.
Called AMSelect, the platform is expected to launch in June – subject to regulatory approval.
It will be overseen by BNPP AM’s multi-asset, quantitative & solutions (Maqs) investment division.
The asset manager said that growing interest from distributors, managers and advisers has led to an acceleration of open architecture, specifically for sub-advisory.
Describing it as “one of the key themes shaping the asset management industry in the coming years”, BNPP AM said sub-advisory platforms create benefits across the value chain, offering investors high conviction alpha strategies, cost efficiencies and ease of use.
10 to start with
At launch, AMSelect will offer 10 funds investing in European, eurozone, US and emerging market equities, together with European fixed income.
Each will be managed externally by managers carefully selected using a rigorous process with input from FundQuest Advisor, BNPP AM’s dedicated third party manager selector. Selection criteria include quality of team and investment process, performance and risk management, together with commitment to sustainable investing.
AMSelect will initially be available to BNPP AM clients whose assets are currently partly allocated to third-party managers, with availability expected to be broadened out at a later stage within the BNP Paribas Group.
BNPP AM is currently engaged in regulatory approval and manager on-boarding and expects to partner with additional third-party managers as the range of funds grows.
Denis Panel, head of Maqs at BNPP AM, said: “Technology is key to how we operate, and we are always looking for new developments to enhance our operational efficiency and improve the quality of service that we provide to our clients. We are convinced that sub-advisory platforms such as AMSelect will become a major trend within the asset management industry.
“AMSelect is a natural development of our outsourced investment capability, made possible by investment in our digital capabilities, our long-standing experience of providing multi-asset solutions and our considerable expertise within external manager selection. AMSelect also allows us to extend our rigorous responsible investment requirements to the asset management companies that have been selected.”
The 10 strategies and managers at launch will be:
|European equity – growth||Allianz Global Investors|
|European equity – value||Amundi Asset Management|
|European equity – blend||LGT Capital Partners|
|Eurozone equity – growth||Sycomore Asset Management|
|Eurozone equity – value||HSBC Asset Management|
|Eurozone equity – blend||Blackrock|
|US equity – growth||AllianceBernstein|
|US equity – value||Harris Associates (an affiliate of Natixis Inv Mgrs)|
|EM equity – blend||Vontobel Asset Management|
|Euro fixed income – aggregate||Bluebay Asset Management|