BNP replaces EMD team with trio from Rexiter
BNP Paribas Investment Partners has won over the entire three strong emerging market debt team from specialist Rexiter Capital Management, following its struggle to attract fund inflows.
Rexiter’s emerging market equity products have suffered from lack of demand as the debt crisis in Europe unfolded. The firm’s equity team remains a full subsidiary of State Street Global Advisors.
BNP IP’s move marks the replacement of its seven-strong EMD team, which it lost to BlackRock back in April, when the competitor decided to significantly build up its emerging markets capabilities.
The managers joining from Rexiter are Mark Capstick, Lewis Jones and Daniel Wood. The trio has worked together since 2007.
They join the existing emerging markets fixed income team, including Asian fixed income specialists, bringing the total team up to 10. They will be based in London, adding to the existing capabilities in Boston and Singapore.
The group will be headed up by John Morton (pictured), head of emerging markets at Fischer Francis Trees & Watts, BNP IP’s global fixed income partner. They will report directly to its CIO Guy Williams.
Williams said: “Emerging markets continue to increase in importance for fixed income investors. The risk adjusted returns of this asset class compare favourably with more traditional asset classes over a long-time horizon.
Today, emerging markets sovereign debt offers higher yields and generally lower duration than developed markets sovereign debt, in addition to strong balance sheets, a commitment to liquidity and favorable demographics.”
Emerging markets are a strong focus for BNP IP, which already manages €45bn in the region across different asset classes.