BNP Paribas Investment Partners (BNPP IP) and Crédit Agricole Asset Management (CAAM) have joined forces to create a European provider of fund distribution services.

CAAM Luxembourg has announced that it is to sell a stake of its Fund Channel, a fund distribution logistical platform, to BNPP IP, forming an ownership of 50.04 per cent and 49.96 per cent respectively.

The deal has been approved by Commission de Surveillance du Secteur Financier, the Luxembourg regulator, and the European Commission. Fund Channel will become one of the leading European players in the logistical support for fund distribution field, and going forward, the assets under administration for both Crédit Agricole and BNP Paribas groups will be handled on the same platform.

"By strengthening Fund Channel's position in Europe, the agreement will create marketplace opportunities for us since many institutional investors are determined to improve their organisational structure and boost their revenues," commented Fund Channel's managing director, Guillaume Abel.

Philippe Marchessaux, head of BNPP IP, added: "This partnership will strengthen BNP Paribas Investment Partners' leadership in the open architecture industry, where we have built strong positions through our multi-management subsidiary FundQuest."

Meanwhile, FundQuest has appointed Charlotte Dennery as CEO and Michel Anastassiades as Executive Chairman of Fisher Francis Tree and Watts (FFTW), owned by BNP Paribas Asset Management. Both will report to Philippe Marchessaux, Head of BNP Paribas Investment Partners.

Of the new venture between CAAM and BNPP IP, Dennery said: "This agreement gives our clients a unique opportunity to take advantage of Fund Channel's unrivalled technological services and to access a broader array of services."

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