BNP Paribas Securities Services focused on Australian superannuation market
The global cross-border fund distribution trend is exploding and Australia's super fund market is a focus of BNP Paribas Securities Services, its chief executive said.
The French custodian bank said that it is passionate about the Australian market especially as the superannuation market boasts $2 trillion. This is almost the size of the worldwide hedge fund market, but grows faster.
BNP Paribas Securities Services said that it is breaking into the market to take advantage of its potential.
"It grows much faster than any pension market in the world and by my calculation in six years this could be the third biggest pension market in the world, almost ahead of Japan," BNP Paribas Securities Services' chief executive, Patrick Colle, said.
Colle said that the key trends it will be monitoring and working with their clients are changing regulation, the ageing population, the IT trend increase to improve the personal investor experience, and the gradual move towards absolute return investment strategy.
Last year, the firm was Australia's number one custodian bank with $300 billion in assets under custody and had already signalled their keen interest to grow into the super fund market two years before.
"We are definitely breaking in and have announced a couple of deals including TWU Super, First Super, and Australian Unity Investments. There is more coming," he said.
The company's assets grew 22 per cent in 2014 and had 12 per cent revenue growth, with the industry average of five per cent. Colle said that this success was due to their aggressive global expansion strategy.
