BNPP AM develops new multi-asset funds

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Singapore-based UOB Asset Management and E Fund Management in Hong Kong are also expected to launch fixed income products.

BNP Paribas Asset Management is waiting for approval from the Monetary Authority of Singapore (MAS) for three products to be sold to the retail public, the regulator’s records show.

The products are two multi-asset funds, the Parvest Multi-Asset Income Europe and the Parvest Flexible Opportunities, and a fixed income fund, the Bond USD Short Duration Fund.

The fixed income fund has already been made available to accredited investors in the Lion City since 2000, according to FE Analytics. The two multi-asset funds have not yet been launched, according to their prospectus.

In Hong Kong, the three products are not yet registered under the Securities and Futures Commission (SFC), FE data show.

FSA sought more information from BNPP AM, but the firm was not able to comment in time for publication.

BNPP AM already manages other multi-asset funds, including the Multi-Asset Income Emerging Fund and the Flexible Multi-Asset Fund.

The new Flexible Multi-Asset and the Flexible Opportunities funds are slightly different in terms of their asset allocation, according to their prospectuses. For example, the Opportunities product allows more allocation to equities and investment grade bonds.

Maximum allocation allowed

Flexible Multi-Asset

Flexible Opportunities

Government bonds

100%

Money market instruments

100%

80%

Equities (global)

80%

100%

Investment grade bonds

60%

100%

Absolute return funds

50%

Cash

49%

49%

Commodities

40%

40%

Emerging market debt

40%

High yield bonds

40%

20%

Real estate

40%

40%

Structured debt securities (including ABS, MBS, CLO)

20%

Source: BNP Paribas Asset Management

Globally, BNPP AM manages around €400bn ($448.13bn) in client assets.

Other fund launches

In Singapore, UOB Asset Management is also waiting for the regulator to approve two two-year fixed maturity global bond funds, according to MAS records.

In December, the Singapore-headquartered firm also registered its United Global Innovation Fund with the MAS. UOB AM managed around S$34.6bn ($25.2bn) in assets as of the end of 2017 globally, with operations in Malaysia, Taiwan, Thailand, Brunei and Japan, according to the firm’s website.

In Hong Kong, E Fund Management received approval from the SFC to launch the E Fund ChinaBond 7-10 Year CDB Bond Index Fund, according to the regulator’s records.

The firm also received a greenlight in December to launch the E Fund (HK) Short Duration Investment Grade Bond Fund and the Hong Kong Dollar Money Market Fund.

Collectively, E Fund and its subsidiaries in China and Hong Kong managed $200bn in assets as of the end of June 2018.

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