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BNP Paribas
O
Weighted
average
scores
2016
2017
2018
5.97
6.04
6.04
2016
5.97
2017
6.04
2018
6.04
detailed explanations”). Even in areas like consulting (where the
nly one firm attracted more responses than BNP Paribas.
Respondent profile
bank does not provide a formal service) and capital introduc-
The scores the client base collectively delivers clear the
(where BNP Paribas has out-sourced the work to Layton
benchmarks in every service area. Fittingly, the bank collects Small tions
fund
59% the scores are still better than average.
Road Group),
its highest score in fixed income: the strategy the established managers
Weighted
primes have all agreed to shun. “BNP
13%
average handles our fixed income Medium-
29%
trading better than any other broker,”
scores as a client puts it. It is one sized fund
managers
2016
5.97 rating. Reassur-
2016
2017
2018
benefit of a big balance sheet and
a strong credit
fund
6.04
6.04
6.04
ance about the safety of assets is 2017
another (“Generally
feel assets Large 5.97
29%
13%
59%
6.04 one by which managers
are safe with this firm”), but the 2018
real benefit, and
PROFILE OF RESPONDENTS
Americas
78%
BNP Paribas would doubtless prefer to be judged, is the ability Europe and
Respondent profile
15%
to compete on margin terms and especially the freedom to be Middle East
creative in coming up with financing
ideas.
“BNP
has
provid-
Asia
Small fund
By 7%
size
By location
59%
ed financing on certain asset classes,
which are
unique, and
managers
scores by service area
7%
worked through the products to Medium-
get this accomplished,” writes a Weighted average
13%
29%
15%
client. A second adds that “BNP sized
has fund
been innovative
in creating
Americas
managers
Large
interesting finance structures that
we believe give our firm a
Weighted +/- t he global
Service area
Large fund
Europe and
average
score
average
competitive advantage.” A third is impressed by
Medium
29%
13% a willingness
59%
managers
Middle East
to “evaluate holdings of the portfolio
on
a
case-by-case
basis
Small
Capital
Americas
78%
78%
Asia
to determine if they are being treated
properly.”
In
fact,
the
introduction
5.41
0.8%
Europe and
15%
detailed scores suggest BNP Paribas
Middle has
East work to do on netting s
and cross-margining before every
it can
Asia client is convinced
7%
Client service
6.46
7.4%
compete on financing terms. That requires being more joined-up
Consulting
N/A
N/A
Weighted
average scores
by service area
7%
internally. “They do provide some
cross-margin
capabilities,
but
Operations
6.22
4.2%
15%
in some areas, it is better to deal directly with other areas of the Technology
Weighted average
5.77 scores
3.0%
Weighted
+/- t he a global
firm,” observes a client. Another Service
believes
that
“they have
lot of
area
2016
2017
2018
work and development needed to compete average
with score
longer average
estab- Product
5.78
5.9%
development
5.97
6.04
6.04
lished/more client-focused prime
broker[s].” If so, the bank is
Capital
78%
introduction
0.8%
getting its client service spectacularly
right. 5.41
Risk
5.85
5.0%
There are numerous accolades s for the responsiveness and
management
problem-solving capabilities of the
people,
with
multiple
reps
Client service
6.46
7.4%
Weighted average
scores by service
area
Asset safety
6.03
5.1%
name-checked in the comments. “BNP’s client services are
Sales and
Service area
Weighted average +/- the global
Consulting
N/A
N/A
6.14
0.2%
some of the best I have come across
in my 17 years
of this line
of
score
average
Operations
6.22
4.2% marketing
work,” reads one. “They are prompt,
accurate, 5.77
personable, with
Technology
3.0% Trading and
6.17
5.4%
Capital
introductions
5.41
0.8%
some of the best follow-through I have encountered.” A high execut ion
Product
Client service
6.46
7.4%
score for operations indicates that
post-trade 5.78
staff work closely
5.9%
development
with the client service teams. “Issues are promptly resolved
Consulting
N/A
N/A
and dealt with,” affirms a client. Risk
“Requests for limits and issues
Operations
6.22
4.2%
5.85
5.0%
impacting clients, such as mappings,
are addressed
in a good
management
Technology
5.77
3.0%
manner.” Another says, “BNP Paribas
helps simplify
a complex
Asset safety
6.03
5.1%
industry and makes our jobs easier
as
a
result.
They
provide
Product development
5.78
5.9%
Sales and
6.14
0.2%
timely and thoughtful commentary
on best practices
for our
marketing
Risk management
5.85
5.0%
operations and we are grateful for
it.” and
The technology platform,
Trading
6.17
5.4%
Asset safety
6.03
5.1%
execut ion a more equivocal verdict.
in which the bank is investing, attracts
Sales
and
marketing
6.14
0.2%
“Web portal is efficient and robust relative to many competing
platforms,” thinks one client, but another argues, “The technolo-
Trading and execution
6.17
5.4%
gy, systems and web reporting is almost adequate. I believe they
Delta 1, swaps and financing
5.95
4.1%
are trying to upgrade some areas.” In other core services it is
Stock borrowing and lending
6.10
2. 2%
hard to find fault. The stock borrowing desk is strong (“The BNP
Foreign
exchange
prime
brokerage
5.92
4.4%
stock loan team works hard to find us hard-to-borrow names
and keep rates tight on a consistent basis”), and the score for
Fixed income
6.30
9.2%
trading and execution is outstanding (“The support and service
OTC clearing
6.08
3.9%
from the execution team is of high quality. We have access to
Listed derivatives
5.86
-0.5%
all exchanges and algos we need. We are able to access liquidi-
ty as needed. Issues are resolved quickly and in real time with
Total
6.04
4.2%
78
Global Custodian
The Hedge Fund Annual 2018