BNP Paribas reshuffles multi-manager team
BNP Paribas harnesses expertise of multi-billion euro business on risk-rated range strategy
BNP Paribas has restructured the management of its multi-manager funds, after stating in the summer it was “reshaping its activities” following staff departures.
FundQuest, the multi-manager business within BNP Paribas, was responsible for both the fund research and management of the IFSL Sinfonia risk-rated funds.
However, the 28-strong FundQuest team has now been moved into the ¤40bn Global Balanced Solutions (GBS) business, which had previously not been involved with the Sinfonia range. GBS is the dedicated asset allocation capability within BNP Paribas Investment Partners, which runs multi-asset solutions for institutional and retail clients.
Now FundQuest will carry out the fund research and GBS will manage the Sinfonia range on a day-to-day basis and decide asset allocation.
The risk-rated range is in the IMA Unclassified sector but the funds have produced returns in line or better than the average funds in the IMA Mixed Investment sectors.
The Income & Growth fund has delivered the best return in the range over three years to October 4 with a return of 21.1 per cent while the Income fund has returned the least with a 16.1 per cent return.
This compares with the IMA Mixed Investment 20-60% Shares sector average return of 16.5 per cent, the IMA Mixed Investment 40-85% Shares sector average return of 18.9 per cent and the IMA Flexible Investment sector average return of 18.1 per cent over the same timeframe, according to FE Analytics.
The move comes after FundQuest’s UK chief executive Antony John left the multi-manager firm in August, at which time parent company BNP Paribas said it would be “reshaping its activities”.
At the time of Mr John’s departure, the group named Gary Hilldrup, who has been chief executive of BNP Paribas Investment Partners UK since 2008, as interim chief executive in addition to his existing responsibilities.
Mr John first joined FundQuest along with star multi-managers Paul Kim and Richard Timberlake when BNP Paribas acquired their former firm IMS in 2008 and merged it with FundQuest.
Early in 2011, however, Mr Kim and Mr Timberlake left the firm to join LV= Asset Management. In March that year, FundQuest lost a roughly £394.1m mandate running Aviva Investors’ fund of funds range, when Aviva hired managers to run the range in-house.
In October last year, FundQuest shut down half of its four-strong range of Select multi-manager funds, closing its CF FundQuest Global Select and CF FundQuest Select Opportunities products after they dwindled in size following the managers’ departures.
Global Select had £8.7m under management on February 28, but this had fallen to just £281,000 at the time of closure.
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