BNP Paribas AM launches sub-advisory platform

BNP Paribas Asset Management (BNPP AM) has launched AMSelect, an open architecture, sub-advisory platform structured as a Luxembourg SICAV.  

Designed to offer BNPP AM clients best-in-class third party manager strategies, it will integrate BNPP AM’s investment guidelines and sustainability requirements. AMSelect is expected to launch in June, subject to regulatory approval.

Growing interest from distributors, managers and advisors has led to an acceleration of open architecture, specifically for sub-advisory which is set to be one of the key themes shaping the asset management industry in the coming years. Sub-advisory platforms create benefits across the value chain, offering investors high conviction alpha strategies, cost efficiencies and ease of use.

AMSelect will provide clients with access to best-in-class strategies from third party managers, incorporating investment guidelines set by BNPP AM, while adhering to BNPP AM’s global sustainability strategy. It also aims to offer improved operational efficiency through the concentration of assets, and strong risk management and sustainability reporting through transparency of investments. AMSelect will be overseen by BNPP AM’s Multi-Asset, Quantitative & Solutions (‘MAQS’) investment division.

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.  For each of the initial 10 funds BNPP AM has selected a manager considered to be among the very best in their field. This selection will be key to the success of AMSelect.

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.  BNPP AM expects to partner with additional third party managers as the range of funds grows.

Denis Panel, Head of MAQS at BNP Paribas Asset Management, says: “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 ten 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