BNP Paribas Securities Services Implements Mandate from Harvest Global Investments
BNP Paribas Securities Services (BNP Paribas) today announced that it has implemented a mandate from Harvest Global Investments (Harvest) to launch an emerging market fund investing in Mongolia, making it the first global custodian to support foreign investments in this Asian frontier market.
Harvest, China's second largest asset manager with USD37 billion in assets under management, appointed BNP Paribas as global custodian, fund administrator, transfer agent and register, in support of the manager's Asian Frontier Equity Fund.
The fund went live in late 2011 and has since been investing in Mongolia. In so doing, Harvest became both the first Chinese and the first cross-border asset manager to take direct investment exposure in the country. BNP Paribas was instrumental in enabling this through the unique operating model that it created, giving Harvest direct access to the market. Using a trustee account opened at the Mongolian Securities Clearing House and Central Depository, BNP Paribas' structure ring-fences Harvest's assets thereby protecting the underlying investors.
BNP Paribas completed the due diligence process more quickly than usual, meeting with local regulators and market participants in order to establish a thorough understanding of the necessary framework for foreign investments.
Commenting on the development, Mr Choy Peng Wah, chief executive officer of Harvest Global Investments said: “Launching our Mongolia fund was a key part of our strategy and we are pleased with the work done by BNP Paribas in enabling that.
“The structure that they created was innovative enough to enable us to invest directly into the Mongolian market, with the reassurance afforded by their expertise in Asia, and robust yet flexible global custody platform.”
Lawrence Au, head of Asia-Pacific at BNP Paribas Securities Services said: “We took a collaborative approach to this challenge with Harvest, and are pleased to have played our part in animating a key element of their global growth strategy.
“Furthermore, Mongolia is an exciting frontier market whose economy is forecast to grow by eight per cent* this year, and we are pleased to be the first and currently – the only – global custodian able to offer direct access to the Mongolian market,” concluded Au, who is also a member of the bank's executive committee.
*According to the Asian Development Bank: http://www.adb.org/documents/books/ado/2011/ado2011-mon.pdf
About BNP Paribas
BNP Paribas (www.bnpparibas.com) has a presence in 80 countries with nearly 200,000 employees, including more than 150,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail banking model across Mediterranean basin countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas and solid and fast-growing businesses in Asia.
Rated AA- by Standard & Poor's, BNP Paribas is one of the best rated banks in the world.
About BNP Paribas Securities Services
BNP Paribas Securities Services (http://securities.bnpparibas.com/jahia/Jahia/site/portal), a wholly-owned subsidiary of the BNP Paribas Group, is a leading global custodian and securities services provider backed by a strong universal bank (rated AA- by Standard and Poor's). It provides integrated solutions to all participants in the investment cycle including the buy-side, sell-side, corporates and issuers.
The bank has a local presence in 32 countries across five continents, effecting global coverage of more than 100 markets. It partners with clients to help overcome complexity, while offering a one-stop shop for all asset classes, both onshore and offshore, around the world.
Key figures as at 31 December 2011: USD 5,854 billion of assets under custody, USD 1,073 billion of assets under administration, more than 7,000 administered funds and 7,700 employees.
More News >>