Convictions Asset Management (Convictions AM) has outsourced its fixed income dealing activities to BNP Paribas Securities Services.
The mandate comes as the asset manager, which currently manages 628 million, decided to focus on investment analysis and selection. The company uses a Global Macro/Top Down strategy, investing in all asset classes and taking into account the economic scenarios and the analysis of the monetary policy of the central banks.
Deciding that trade execution and sourcing of liquidity would be delegated to a specialist provider, the manager appointed BNP Paribas with whom it already had a five year relationship for back and middle-office outsourcing. In the first quarter of 2012 the bank migrated ConvictionsAMs fixed income dealing activities onto Dealing Services, BNP Paribas Securities Services outsourced dealing platform.
Alexandre Hezez, CIO at Convictions AM said: When we agreed this project with BNP Paribas we expected it to result in more time to concentrate on research and allocation, and that we would benefit from access to better liquidity. However while the current delegation only concerns fixed income, BNP Paribas dealing platform would have the necessary flexibility to allow us to take on new asset classes, should that ever become a consideration for us.
Philippe Boulenguiez, head of dealing services at BNP Paribas Securities Services said: Once limited to the back and middle offices, outsourcing in asset management is increasingly moving towards the front office. Convictions AM is at the cutting edge of this trend and were delighted to have developed a partner-oriented approach in which they benefit from information and wider market access.
Northern Trust has been re-appointed by Generation Investment Management to provide full investment operations outsourcing for its asset management business.
Outsourcing reduces the administrative burden of asset management, enables cost-efficiencies, and has the potential to reduce operational risk, said Laurence Everitt, head of Global Fund Services, UK at Northern Trust. More and more asset managers are seeing the benefits of outsourcing their investment operations and we are delighted that Generation continues to look to Northern Trusts tailored and fully automated outsourcing platform to support its requirements.
Generation first appointed Northern Trust in 2005 to provide custody, investment operations outsourcing, fund accounting, transfer agency, performance measurement and client reportingacross its fund range domiciled in Dublin and Delaware.
(JDC)