BNP Paribas Securities Services has been selected by CSOP Asset Management to provide administration services for funds using Singapore’s new Variable Capital Company (VCC) structure.
With assets under management of $6.3 billion, CSOP is the largest Chinese asset manager to use Singapore’s new corporate fund structure. The establishment of the VCC represents an important step in CSOP’s continued overseas expansion, after the firm set up offices in Singapore to develop a family office and external asset management business in Southeast Asia.
“We selected BNP Paribas for its global footprint, ‘One Bank’ approach to client relationship management and in particular its dedicated support of Chinese asset managers and commitment to Singapore and Asia-Pacific. We look forward to building a long-term partnership with BNP Paribas to achieve success in the VCC structure together,” said Ding Chen, CEO, CSOP Asset Management.
As part of the mandate, BNP Paribas will also provide CSOP with custody solutions, fund administration and transfer agency services.
Last month, BNP Paribas secured a fund services and custody mandate from Kamet Capital Partners, one of the first fund managers to use Singapore’s VCC structure.
“We have a strong track record of supporting clients’ regional and global growth and provide access to APAC Fund Passporting and Mutual Recognition of Funds. The launch of the VCC structure marks an important new phase in the development of Asia’s fund management industry and we are committed to supporting the development of corporate fund structures in Asia-Pacific,” added Mostapha Tahiri, head of BNP Paribas Securities Services Asia Pacific.
Since coming into force in January 2020, 18 fund management firms have signed up to the new corporate structure, which is designed to strengthen Singapore’s status as a regional fund distribution hub. It also supports umbrella and sub-funds structures, with the latter allowing sub-funds to appoint a local board of directors and use the same service provider as the umbrella fund.