Franco-German financial group Oddo BHF is set to merge its two existing asset management companies in Germany, Oddo BHF AM GmbH and Frankfurt-Trust Investment-Geselllschaft mbH.
The operation aims at creating enhanced asset management capabilities in Germany by combining and strengthening the expertises of both firms. Oddo BHF AM, led by Nicolas Chaput, will manage €61bn in assets of which €18bn are invested in equity funds, €21bn in fixed income funds, €12bn in multi-asset funds and solutions, €1bn in alternative funds and €10bn in third party administration and KVG solutions (Kapitalverwaltungsgesellschaften).
Oddo BHF AM will therefore become the unique asset manager of Oddo BHF group. Institutional investors and distribution partners account for 70% and 30% of the firm’s AuM respectively while 68% of its clients are based in Germany, 26% in France and 5% in other countries.
The firm specified both institutional and wholesale customers in Germany will see no interruption in their current client coverage. The local contact persons will remain the same.
The merger is subject to the pending approval of German regulator BaFin as well as that of the worker council’s consultation, and is expected to be effective during the first half of 2018.
Nicolas Chaput, global chief executive officer of Oddo BHF Asset Management, said: “We believe that bringing together Oddo BHF AM and Frankfurt-Trust will offer our clients unique investment opportunities in a coordinated manner. The merger of Frankfurt-Trust into Oddo BHF AM will allow us to enhance the quality of our product and services and to maintain a steady level of innovation by investing more in research, IT, as well as client servicing. Our ambition is to keep and develop the investment strategies and the talents of both companies.”