Posted inBusiness moves

Allfunds plans Asian expansion from new Singapore hub

Mutual funds platform operator Allfunds Bank has announced plans to expand across Asia by launching an operational hub in Singapore to service a new local business, which will open early next year, as well as businesses in Hong Kong and Taiwan.
Singapore Marina bay area.

The Singapore hub will also act as a base for Allfunds to pursue other opportunities across the region, including the possibility of entering the China market at some point.

The Allfunds platform, which is the biggest in Europe, allows distributors to open accounts, transact funds for end-clients and have comprehensive workstation where they can put out confirmations, corporate actions and other matters related to middle and back office functions.

Allfunds chief executive, Juan Alcaraz, said the company had seen increasing interest from Asian fund distributors for its independent, open architecture model with its range of fund processing, information provision and fund research activities.

“Banks, insurance companies, asset managers and wealth managers in Asia are taking a very hard look at their bottom lines and how effectively they run their business,” Alcaraz said in a statement.

“When talking to Allfunds they quickly realise that they can hand over mutual fund services to a business that has an institutional focus with a very extraordinary degree of specialisation – it is a powerful combination during these challenging times.”

“Also, the expanded distribution reach that Asia provides Allfunds’ existing asset management partners improves the potential for distribution of their funds,” he said.

Disposal considered

Created in 2000 and owned in equal parts by the Santander and Intesa Sanpaolo banks, Allfunds Bank has more than €249bn (£209bn, $260bn) in assets under administration and offers close to 50,000 funds from 550 fund managers. It already has a local presence in Spain, Italy, UK, Chile, UAE, Switzerland, Colombia, Luxembourg and has more than 500 institutional clients.

Italy’s Intesa Sanpaolo said last month it had begun to look into the possible sale of its 50% stake in Allfunds while Santander is also believed to be considering a similar move.

Reuters has reported that US buyout fund Bain Capital and Europe’s Advent are planning to make a joint bid for the business, which could be worth up to €2bn.

Cinven, Permira, BC Partners and Hellman & Friedman have also discussed Allfunds with its Spanish and Italian owners, prompting a strategic review of the platform, it said.

Part of the Mark Allen Group.