Founded in 1983, Massachusetts-based FundQuest develops and operates Web-based managed account platforms for more than 60 financial institutions. The firm's investment platform provides a range of services including asset allocation, analysis portfolio management, reporting analytics and a selection of institutional investment "boutiques".

BNP says the acquisition will enable it to move into managed accounts in the US, which it says is a segment of the US investment industry with strong growth potential. In Europe FundQuest will be merged with the bank's Cortal Consors Fund Management subsidiary.

The bank says it will use FundQuest as its global brand for wealth management solutions in open architecture in both the US and Europe.

Gilles Glicenstein, Chairman and Chief Executive Officer of BNP PAM, comments: "FundQuest is an integral part of the strategic vision to create a global wealth management platform based on best-in-class manager selection and superior technology.

"We will capitalise on FundQuest's strong position as an independent managed account provider. We will develop a new consultative sales approach, providing our clients with easy to use, high quality advice-based tools."

Robert Del Col, CEO, FundQuest, says institutions are increasingly demanding solutions that will give investors objectivity, transparency and product neutrality when it comes to wealth management services.

"The potential upside for FundQuest is enormous in our core business as well as in the emerging areas of retirement income planning and bank trust wealth management services," he adds.

The transaction is expected to close in August.