BNP Paribas and Fortis Investment Management to merge

BNP Paribas Investment Partners Australia and Fortis Investment Management Australia are set to merge following BNP’s majority shareholding acquisition in Fortis Bank in May 2009. The legal integration is expected to occur in April.

Robert Harrison, CEO of BNP Paribas Investment Partners Australia, has been selected to head the combined entity for Australia and New Zealand. The combined entity will have assets under management of $23.2 billion, making it the 15th largest fund manager in the Australian market — a move up from BNP Paribas Investment Partners’ current ranking of 18th.

The merger will see the product offering in Australia and New Zealand expand to include the distribution of Fortis’ Investments’ funds management expertise in Australian equities and global real estate. Currently products from six of the BNP Paribas Investment Partners network of specialist partners are distributed in the two countries, including BNP Paribas Asset Management, Fischer Francis Trees and Watts, Overlay Asset Management, Fauchier Partners, Impax and Antin Infrastructure Partners.

In addition, Australian equities fund manager Fortis Investment Partners (40 per cent of which is currently owned by Fortis Investment Management Australia) will become one of 26 specialist partners within the global BNP Paribas Investment Partners network. BNP Paribas Investment Partners will retain a 40 per cent shareholding in the Australian equities fund, which will be rebranded during 2010. It has also formed strategic distribution alliances with global equities firm Massachusetts Financial Services and private equity company Hamilton Lane.

On a global level, the merger makes BNP Paribas Investment Partners the 11th largest asset manager in the world — with $800 billion in assets under management.