BNP Paribas Securities Services has been appointed by CSOP to provide fund administration services for funds using Singapore’s new variable capital company (VCC) structure.
As part of the mandate, BNP Paribas will provide CSOP with custody solutions, fund administration and transfer agency services.
The VCC is designed to strengthen Singapore’s status as a regional fund distribution hub and allows umbrella and sub-funds, and the option to be open-ended and closed-ended.
The new corporate structure was launched by the Monetary Authority of Singapore in January this year, to strengthen its status as a regional fund distribution hub.
With $6.3 billion assets under management (as of December 2019), CSOP is the largest Chinese asset manager to use the new structure.
According to Ding Chen, CEO of CSOP Asset Management, BNP Paribas was selected for its “global footprint, one bank approach to client relationship management and in particular its dedicated support of Chinese asset management and commitment to Singapore and Asia Pacific”.
BNP Paribas Securities Services currently provides a suite of services for Chinese asset managers’ expansion into new markets, including solutions for private and public funds, traditional and alternative strategies, plus support for cross-border fund passporting schemes.
Mostapha Tahiri, head of BNP Paribas Securities Services, Asia Pacific, commented: “We have a strong track record of supporting clients’ regional and global growth and provide access to APAC fund passporting and mutual recognition of funds.”
“The launch of the VCC structure marks an important new phase in the development of Asia’s fund management industry and we are committed to supporting the development of corporate fund structures in Asia Pacific,” Tahiri added.
One of the first fund managers to use Singapore’s VCC structure was Kamet Capital Partners, who also appointed BNP Paribas Securities Services to provide fund administration and global custody services in Singapore for this.
