BNPP AM expands AMSelect sub-advisory platform
BNP Paribas Asset Management (BNPP AM) has expanded AMSelect, its open architecture sub-advisory platform.
Launched in June 2021, the platform has reached EUR1.5 billion of assets under management, and will add four new funds before the end of the year to complement the existing offering.
AMSelect provides BNPP AM clients with access to best-in-class strategies from third party managers, incorporating investment guidelines set by BNPP AM, while adhering to its Global Sustainability Strategy. Clients also benefit from improved operational efficiency through the concentration of assets, and strong risk management and sustainability reporting through transparency of investments.
In addition to the 10 existing funds investing in European, Eurozone, US and emerging market equities, and European fixed income, AMSelect will add four additional funds, within emerging market equities, Eurozone credit and global credit. Each will be managed externally by managers carefully selected using a rigorous process, including input from FundQuest Advisor, BNPP AM’s dedicated third party manager selector. The funds are expected to launch by the end of the year, when the managers will be named.
Julien Mechler has been appointed as Head of Sub-Advisory. Based in Paris, he will be responsible for expanding the platform and managing the AMSelect team. Mechler has 27 years’ of investment experience, focusing on open architecture and manager selection since 1998. He co-founded one of Europe’s first and most important open architecture platforms, Asset Allocation Advisors, of which he was Chief Investment Officer for 20 years. Most recently Mechler was a strategic investment consultant, advising BNPP AM on the design and launch of AMSelect. Julien reports to Lucien Carton, Head of Solutions & Client Advisory.
Initially available to BNPP AM clients with assets partly allocated to third party managers, AMSelect is being expanded to clients of other BNP Paribas Group businesses, including Wealth Management.
The sub-advisory market has experienced annual growth of around 20 per cent in recent years, with similar growth levels expected in the coming years amid a continued focus on providing the best value for clients in an environment in which sustainability is of increasing importance. This rapid expansion means that the size of the sub-advisory market is now equal to that of the overall fund of funds market.
Lucien Carton, Head of Solutions & Client Advisory, says: “Sub-advisory provides significant benefits to our clients and is an important building block within our solutions offering. Our long-standing research experience within FundQuest Advisor, combined with Julien’s extensive experience in the European sub-advisory market, means that we are well placed to deliver sustainable value to our clients.”