MUFG adds ’40 Act fund servicing to its portfolio
29 July 2016 New York
Image: Shutterstock
MUFG Investor Services, the global asset servicing arm of Mitsubishi UFJ Financial Group, is set to acquire Guggenheim Investements’s 1940 Act mutual fund administration business, Rydex Fund Services, for an undisclosed fee.
The transaction is expected to close in Q4 2016.
According to MUFG Investor Services, the deal will fulfills its desire to provide a “full service offering for investment managers”, by adding regulated 1940 Act mutual fund and exchange traded fund services to its existing stable of single manager, fund of hedge fund, private equity and real estate funds, pension funds and traditional asset managers services.
The acquisition adds $52 billion to MUFG Investor Services’ assets under administration, bringing its total to $422 billion.
MUFG confirmed that the assets serviced by Rydex Fund Services primarily consist of Guggenheim and Rydex branded mutual funds, exchange-traded products and closed-end funds, for which Guggenheim Investments will continue to serve as investment advisor.
John Sergides, global head of business development and marketing at MUFG Investor Services, said: “Demand for liquid alternative strategies has risen significantly in recent years as retail investors recognise the return potential and diversification benefits relative to traditional asset classes.”
“Alternative fund managers are increasingly establishing ‘40 Act fund structures to access this growing market. We recognise the challenging environment our clients face and continue to enhance our offering to support the strategies that managers must deliver, both now and in the future. Our complete offering will allow us to become the partner of choice for alternative fund managers of all sizes, strategies and structures.”
The transaction is expected to close in Q4 2016.
According to MUFG Investor Services, the deal will fulfills its desire to provide a “full service offering for investment managers”, by adding regulated 1940 Act mutual fund and exchange traded fund services to its existing stable of single manager, fund of hedge fund, private equity and real estate funds, pension funds and traditional asset managers services.
The acquisition adds $52 billion to MUFG Investor Services’ assets under administration, bringing its total to $422 billion.
MUFG confirmed that the assets serviced by Rydex Fund Services primarily consist of Guggenheim and Rydex branded mutual funds, exchange-traded products and closed-end funds, for which Guggenheim Investments will continue to serve as investment advisor.
John Sergides, global head of business development and marketing at MUFG Investor Services, said: “Demand for liquid alternative strategies has risen significantly in recent years as retail investors recognise the return potential and diversification benefits relative to traditional asset classes.”
“Alternative fund managers are increasingly establishing ‘40 Act fund structures to access this growing market. We recognise the challenging environment our clients face and continue to enhance our offering to support the strategies that managers must deliver, both now and in the future. Our complete offering will allow us to become the partner of choice for alternative fund managers of all sizes, strategies and structures.”
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