BNP Paribas Securities Services has implemented a mandate to in-source the fixed income dealing activities of Convictions Asset Management.
Convictions AM, which currently manages €628 million in assets, wanted its portfolio managers to focus on investment analysis and selection so that they could adapt to challenging market conditions, according to BNP Paribas.
The asset management firm decided to outsource trade execution and liquidity sourcing to a specialist provider. It appointed five-year back- and middle-office partner BNP Paribas to the role.
In Q1 2012, BNP Paribas migrated Convictions AM’s fixed income dealing activities onto Dealing Services, which is the outsourced dealing platform of BNP Paribas Securities Services.
Through the relationship, BNP Paribas has enabled Convictions AM’s investment team to focus exclusively on its core investment management business. BNP Paribas has also identified new and diversified brokers and counterparties for the asset management firm, helping it to locate new liquidity avenues.
Alexandre Hezez, the chief investment officer at Convictions AM, said: “When we agreed this project with BNP Paribas we expected it to result in more time to concentrate on research and allocation, and that we would benefit from access to better liquidity. However, while the current delegation only concerns fixed income, BNP Paribas’ dealing platform would have the necessary flexibility to allow us to take on new asset classes, should that ever become a consideration for us.”
Philippe Boulenguiez, the head of dealing services at BNP Paribas Securities Services, said: “Once limited to the back and middle offices, outsourcing in asset management is increasingly moving towards the front office. Convictions AM is at the cutting edge of this trend and we’re delighted to have developed a partner-oriented approach in which they benefit from information and wider market access.”
