BNP Paribas Investment Partners will close down its Australian fixed income asset management business, after only two years of operation.
"BNP Paribas Investment Partners has decided to discontinue its Australian Fixed Income asset management capability, but remains committed to the Australian and New Zealand market in representing best of breed global and local fund managers," a spokesperson told InvestorDaily.
"BNP Paribas continues to offer primary and secondary fixed income services through its corporate & investment banking business," she said.
BNP Paribas IP only established the business mid 2010, when it recruited Doyle Mallett to set up a fixed income division, appointing him as head of Australian fixed income.
The company would not say whether Mallett would remain with the firm.
He joined BNP Paribas IP from Austock Asset Management, where he held the roles of head of fixed interest and portfolio manager.
Mallet also had stints with 452 Capital Warakirri Asset Management.
But he spent the majority of his career with BT Funds Management, where he became head of global fixed interest, currency, asset allocation and economics before leaving in 2002.
Mallett was responsible for managing the BNP Paribas Asset Management core fixed income fund.
According to data from Morningstar, the fund had $37 million in assets under management at the end of March this year, which was only slightly more than the $34 million of seed money provided by BNP Paribas Investment Partners at the start.
The decision to close the fixed income business comes only two days after BNP Paribas announced an end to the distribution agreement with one of its largest partners, MFS Investment Management.
MFS has expressed the desire to establish its own office in Australia, following the growth of the business.
