BNP Paribas Securities Services is giving an implicit vote of approval to the master-feeder fund structure, whose future is somewhat clouded as Ucits IV nears, by launching a suite of back office services free of costs at feeder fund level.
BNP Paribas Securities Services is giving an implicit vote of approval to the master-feeder fund structure, whose future is somewhat clouded as Ucits IV nears, by launching a suite of back office services free of costs at feeder fund level.
The services of administration, custody, depot bank and reporting will typically entail no charges for feeder funds, the French banking group said.
The service, from the largest provider of such services to Ucits-compliant funds in Luxembourg, will also help managers comply with the edicts of Ucits IV.
The move is an implicit vote of confidence in the master-feeder construct, which some feel could become less prevalent under Ucits IV, as the need to establish feeder funds for separate registration in EU countries falls away.
Groups such as France’s Amundi are already planning reducing the number of funds they have in their VaR absolute return range.
Margaret Harwood-Jones, head of client segments for asset managers and alternative investments at BNP Paribas Securities Services, said: “Supporting any combination of masters and feeders, we offer an end-to-end service accessible from most of Europe.”
Philippe Ricard, head of asset and fund services at BNP Paribas Securities Services, said: “Our solution combines local expertise and global connectivity with a robust global platform to help our clients make the most of Ucits IV.”
The unit’s service will give managers a consolidated view of each feeder fund, and automated fund dealing will reduce the number of manual functions managers will be required to undertake.
Harwood-Jones said: “We are firm believers in the global Ucits brand. Increasing efficiency and reducing costs in line with the directive is unequivocally the best response to this market development.”
BNP Paribas is present in 32 countries across Europe, Asia Pacific and the Americas.
