Belgian fund provider KBC Asset Management is set to cease fund distribution in Germany and Austria as of January 2017, German media report.
KBC Asset Management currently cooperates with the Frankfurt-based division of BKB Bank (Bremer Kredit Bank), which is in charge of distributing KBC funds in Germany, Austria and Switzerland.
BKB Bank is the successor of KBC’s German division, which was sold by KBC in 2014 and is currently owned by the following investors: Teacher Retirement System of Texas, Apollo Global Management and Grovepoint Capital.
The existing contract between the two groups has not been extended as KBC aims to focus the distribution in Belgium and Eastern Europe using its in-house distribution network, according to Fonds professionell, citing a statement circulated by KBC to its clients in the region.
A spokesperson for KBC confirmed with InvestmentEurope: “With the sale of KBC Bank Deutschland in September 2014, the cooperation with BKB turned to non-captive by nature and therefore outside of KBC Asset Management’s core strategy: be a captive asset manager and follow KBC Group on its core markets (i.e. Belgium, Czech Republic, Slovakia, Hungary and Bulgaria, and also Ireland). Discontinuing the cooperation with BKB was a logic consequence of this strategy. For the same reason, KBC Asset Management has no intentions to establish third party distribution in Germany, Austria or Switzerland.”