Deals of the Year 2011: BNP Paribas Emerging Balanced Note index
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The need for a change in approach to the new normal pervaded the markets last year from the largest deals to the smallest. BNP Paribas extended its reach in bespoke index products to address the changing priorities among its private banking clients. The Emerging Balanced Note that it developed for a Belgian private client last year was a direct answer to the changing demands of an increasingly sophisticated client base. "The client wanted a product invested in emerging markets so the key was to find the right underlying," says Gilles Staquet, managing director and head of global equities and commodity derivatives sales at BNP Paribas in Brussels. "The easy option would have been to use a few market indices or to create a custom-built basket of stocks. But using funds was the best solution as they are dynamically managed by specialists."
Gilles Staquet, BNP Paribas
The desire of the client to diversify its emerging market exposure led the bank to build it a bespoke emerging market index (as part of the bank’s My Index solution) composed of 10 funds: five invested in equities and five in local sovereign debt.