It's been a big morning for outsourcing solutions. State Street and JP Morgan have announced new outsourcing deals, while BNP Paribas Securities Services has launched the first Ucits IV compliant master-feeder solution in Luxembourg.
The State Street deal with F&C Asset Management and its subsidiary Thames River Capital covers £106bn (€120bn) of assets. State Street is to provide F&C AM with operational services, including investment operations, custody, fund accounting, securities lending and transfer agency.
Meanwhile, JP Morgan’s Worldwide Securities Services business claims to have completed an industry "first two" by migrating assets to its platform from an existing middle and back office services provider for Artemis Investment Management and in-house client JP Morgan Asset Management. The services provided by the JPM platform include custody, fund administration, investment operations and derivatives services.
The new BNP Paribas master-feeder solution has, of course, a somewhat different complexion. From the beginning of July, Ucits will be authorised to use master-feeder structures to pool assets. Envisaged by the regulator as a way to help rationalise fund ranges and bring down total expense ratios, the new master-feeder structures can be used either to allow several providers to amalgamate assets or one provider to duplicate an existing Ucits in several countries.
The feeder fund must invest at least 85% of its assets in the master and must monitor the master. An information sharing agreement therefore has to be in place.
According to BNP Paribas, its first-to market master-feeder solution gives asset managers a 360 degree view into the master. And, uniquely, according to BNP Paribas, the solution includes fund administration, global custody, depot bank and reporting services, and these services are cost-free for the feeder level under certain (unspecified) circumstances.
According to Philippe Ricard, head of asset and fund services at BNP Paribas Securities Services, the new master-feeder solution is supported by BNP Paribas’ teams on the ground in 32 countries across Europe.
“Our solution combines local expertise and global connectivity with a robust global platform to help our clients make the most of Ucits IV,” he said.
The company also sees its new master-feeder solution as part of the development of the all-important Ucits brand.
As the largest Ucits service provider in Luxembourg, we are firm believers in the global Ucits brand,” said Margaret Harwood-Jones, head of client segments – asset managers & alternative investments, at BNP Paribas Securities Services. “Increasing efficiency and reducing costs in line with the directive is unequivocally the best response to this market development.
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