BNP Paribas pulls out of asset management JV in Taiwan

20 January 2014   Category: News, Asia, Taiwan   By Hui Ching-hoo

BNP Paribas Investment Partners has withdrawn from BNP Paribas TCB Asset Management, a joint venture formed in 2011 between the French asset manager and state-owned Taiwan Cooperative Financial Holdings Co (TCFH). TCFH has agreed to buy BNP Paribas Investment Partners’ shares in the JV.

TCFH has 51% stake in the JV while BNP Paribas holds the remaining 49%. The JV has been struggling to keep its business profitable, which is mainly due to its peripheral market share of only 0.16%. The JV had total AUM of NT$3.12 billion (US$104 million) as of the end of 2013.

Last year, BNP Paribas TCB Asset Management succumbed to losses of NT$9.3 million, against a loss of NT$8.8 million in the previous year.

TCFH Chairman Leon Shen told local media that the firms have decided to part ways following differences in opinion in regard to business strategy. However, the separation will have no effect on another JV between the two outfits: BNP Paribas Assurance TCB Life Insurance Co. 

TCFH President Yu Chin-tang said the asset management entity would be renamed upon the completion of the transfer of shares, which will likely be in the first half of this year.

The transaction is subject to the approval of Taiwan’s Financial Supervisory Commission (FSC).