Convictions AM outsources fixed income dealing to BNP Paribas

BNP Paribas Securities Services (BNP Paribas) has implemented a mandate to in-source the fixed income dealing activities of Convictions Asset Management.

In challenging market conditions, Convictions AM, which manages €628m, wanted its portfolio managers to focus on investment analysis and selection.

It decided that trade execution and sourcing of liquidity would be delegated to a specialist provider, and appointed BNP Paribas, with whom it already had a five year relationship for back and middle-office outsourcing.

In Q1 2012 the bank migrated Convictions AM’s fixed income dealing activities onto Dealing Services, BNP Paribas Securities Services’ outsourced dealing platform, and has also helped the manager locate new avenues of liquidity by identifying new and diversified brokers and counterparties.

Alexandre Hezez, chief investment officer at Convictions AM said he had expected the project to result in more time to concentrate on research and allocation, and access to better liquidity. However, he says it has also allowed the manager to consider taking on new asset classes in addition to fixed income.

Philippe Boulenguiez, head of dealing services at BNP Paribas Securities Services commented that outsourcing in asset management is increasingly moving from the back and middle office, where it was in the past, towards the front office.

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