The Dealing Services solution allows super funds with in-house fund management capabilities to access an established platform with specialist dealers.
Speaking to InvestorDaily, BNP Paribas managing director for Australia and New Zealand, Pierre Jond, said the benefit of the solution is that it provides a “neutral” solution without asset managers having to end any established broker relationships.
“Large superannuation funds are looking into increasing the scope of their services to manage some of their assets in house,” Mr Jond said.
“What is quite unique about our proposition is the fact that, typically, investment managers want to be able to appoint their own brokers, they want to be able to have their own panel of brokers and key access to research and so on.
“What we are providing is actually the broker-neutral solution whereby we work with appointed brokers of the client.”
Mr Jond said existing relationships with brokers can be important for asset managers, but that BNP Paribas’ neutral solution allows this to be mixed with an independent assessment.
“If there is an issue, a new initial public offering, the broker will invite the contacts or the investment managers with which he has a better relationship, so over time the relationship is quite important,” Mr Jond said.
“What we will be providing on the other hand is best execution results to the client to make sure that the trades are made according to a best execution.”
The dealing services solution is already established abroad, including Europe and Asia.
Mr Jond said it is being rolled out in Australia due to the potential uptake by the super fund industry.
“We think there is quite a lot of potential for this service here, particularly in the superannuation sector, so quite a lot of super funds are looking to set up this investment manager capability and having this outsourcing solution is actually quite timely,” Mr Jond said.
“The main benefit is essentially a manner of cost…if you are outsourcing the service you get a cost structure which moves from being a fixed cost to a variable cost.
“So any small- to medium-sized investment manager will be interested, or will have some interest in a discussion around outsourcing.”
