BNP Paribas launches US mutual fund administration business

BNP Paribas has become the first European custodian to launch a US mutual fund administration business.
By Joe Parsons

BNP Paribas Securities Services has become the first European custodian to venture into the US mutual fund market, following its outsourcing deal with Janus Henderson’s US 40’ Act funds.

The deal will see BNP Paribas assume all responsibility for Janus Henderson’s fund administration and fund accounting, middle-office and custody functions in the US.

In addition, more than 100 Janus Henderson employees currently serving in middle- and back-office functions will become employees of BNP Paribas.

Patrick Colle, CEO of BNP Paribas Securities Services, told Global Custodian the launch of its mutual fund administration (MFA) business has been 10 years in the making, and represents a significant milestone for the bank.

“For our US offering and footprint, it is a major step because this allows us to have a substantial US mutual fund/40 Act fund administration platform. This allows us to serve US mutual funds, which in itself is a significant market holding $16.3 trillion in assets under management,” said Colle.

“It is a market that we see an increasing trend towards outsourcing, particularly in the middle and back office, and when you look at the mid-tier mutual fund market it is increasingly looking to expand in to multi-asset. It is our view that there is a space that is underserved, and we do see great potential.”

The mandate will see $130 billion of Janus Henderson’s mutual funds transition to BNP Paribas assets under administration (AuA).

BNP Paribas has been a long-time outsourcing partner with Janus Henderson, after expanding its custody and fund administration services for the asset manager’s Singapore-domiciled funds in June.

Expanding in the US market has been a major goal for BNP Paribas over the last five to 10 years, mainly providing sub-custody and hedge fund administration services to European and Asian asset managers with a US subsidiary.

In February it promoted Claudine Gallagher as head of its newly established Americas region, taking on responsibility for both North and Latin America.

Colle added the next goal for the custodian is to help those global asset managers launch into the US market with a locally based outsourcing service.

“The interest for the US market is huge for global asset managers, being those asset managers in Europe or Asia, they want to grow in the US fund market. We want to serve them with a strong and reputable offering not just with custody, but also mutual fund administration,” he said.