The Belgian has taken over the Nordic platform and adds pressure to the European wholesale market, which is led by Allfunds and where Inversis wants to grow.
More competition for mutual fund supermarketsespecially for the Spanish Allfunds and Inversis Banco. Belgian financial group Euroclear has closed the purchase of the Nordic platform MFEX, which puts pressure on the wholesale network from which these investment products so in vogue among customers are distributed, especially with the ultra-low interest rates maintained by the ECB.
Euroclear, whose business is based on post-trade services, that is, the settlement and custody of national and cross-border securities (bonds, shares and derivatives) for investment funds, had announced its agreement with MFEX last March. The financial terms of the transaction have not been disclosed.
For those who do not know MFEX, it is in the top-10 of the largest investment fund platforms in Europe, a ranking led by the Spanish Allfunds. The MFEX group was founded in Sweden in 1999. Its general manager for Spain and Portugal is Antonio Manso, who came to the firm in 2018 from Ahorro Corporación and in 2020 was promoted to first sword. It should be remembered that, in 2018, MFEX had acquired the Spanish platform Ahorro Best Funds from Ahorro Corporación.
The Nordic company covers a global market amounting to 320,000 million euros in assets under management. In addition to distributing funds, it also does trading, custody and data technology solutions, a market infrastructure business that is expanding and to which practically all the wholesale platforms in the sector are going. In your case, it distributes among the banks, insurers and other finalist investment firms that are hooked on its platform more than 80,000 investment funds from 960 different managers.
The Euroclear operation is part of a context of high competition in the old continent for this type of wholesale supermarkets. A business niche that the Spanish Inversis Banco (of the Banca March group) wants to attack after its failed sale attempt at the beginning of 2019.
Investments and Allfunds
As Inversis has recently announced, it will allocate 100 million euros over the next three years to grow both in Spain and abroad. Its two strategic pillars are to undertake purchases and advance in its technological transformation and in the digitization of investment services. In this second aspect, Accenture is helping you thanks to a strategic alliance.
Since 2010, the March’s wholesale investment bank, led by Albert del Cid, it already offers some services in Switzerland, Portugal, the United Kingdom, Chile, Peru and Uruguay. But he wants to grab a bigger piece of the pie in Europe and also in Latin America. On their roadmap is the launch of investment services in Luxembourg and they are following the evolution of regulations on crypto assets to set foot in the digital currency sector such as bitcoin or ethereum.
Both MFEX (which is in the top-10 European) such as Inversis (for the moment outside this ranking) have to deal with the spectacular growth of the also Spanish Allfunds. The wholesale bank of funds and wealthtech lead by Juan Alcaraz It has been listed since April on Euronext Amsterdam, in what has been the largest IPO of a national company in many years.
Through June, Allfunds’ assets under management increased by 16.4% compared to 2020, to close to €1.4 trillion. Their Half-year net profit was 117.4 million euros, 94% more than in the same period of the previous year, when it reached 60.6 million in the middle of the first wave of Covid-19. Since its debut, Allfunds stock has revalued 21%, up to 16.78 euros by title.
Allfunds’ reach is global, where it also competes with MFEX, although its scale is much larger. At that level, his main rival is Pershing, the platform of BNY Mellon and one of the largest on the planet. At the moment, Allfunds is focusing its growth on Europe (France and Germany)does not leave the United States aside and, above all, wants to be a relevant actor in Asia.
It was already present in Singapore and Hong Kong and a few days ago it received authorization to operate in Shanghai through a local office, to balance its strong position in the market offshore as a new entrant on the market offshore of the region, the fastest growing in the world.