By Andrei Skvarsky
BNP Paribas, France’s largest bank, has muscled into Russia asset management by slapping its brand on a joint venture with Russia’s TransCreditBank.
The two financial institutions take over the legacy of KIT Fortis Investments business which was formed in Russia three years ago by KIT and Fortis who both respectively blew up in their domestic markets in Russia and Belgium. The JV is being renamed to the catchy and pithy TKB BNP Paribas Investment Partners.
BNP has a retail, investment and corporate banking presence in Russia. It looked at buying Trust bank in the wake of the crisis before the deal collapsed on price.
The joint venture has about 2 billion euro in Russian and foreign equities, fixed income and real estate assets. It manages Russian equity and BRIC funds registered by BNP Paribas and Alfred Berg in Luxembourg and the Nordic region, as well as 24 multi-asset class funds within Russia for domestic clients.
In a bid to boost its retails funds, TKB BNP said yesterday at a press conference it plans a deal on mutual fund distribution with TransCreditBank, the Russian Railways lender whic has a network of 300 offices in 180 cities and towns.
TKB BNP also said it has stepped up cooperation with Russian corporate pension funds.
TKB BNP general director Vladimir Kirillov told EmergingMarkets.me the venture, which has more than doubled its total volume of assets under management since 2007, expects to become one of Russia’s top three asset management companies within three years.
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