CUSTODY

First State Investments switches custody mandate from State Street to BNY

BNY Mellon will provide global custody, fund accounting and transfer agency for First State Investments' UK domiciled fund.

By Joe Parsons joe.parsons@strategic-i.com November 20, 2017 11:25 AM GMT

BNY Mellon will provide global custody for First State Investments’ £18.8 billion UK-domiciled fund. 

The world’s largest custodian will also provide fund accounting, transfer agency, trustee and depository services for First State Investments’ ICVC fund.

BNY Mellon wins the global custody mandate from State Street, First State’s custodian for the fund since 2011.

“We are delighted to extend our partnership with First State Investments and committed to providing them with high quality servicing support, helping them execute their stated aim of providing the best possible outcomes over the long term to their investors,” said Rachel Turner, business executive and head of offshore asset servicing, BNY Mellon.

The mandate provides BNY Mellon some added breathing room as it looks to maintain its position as the world’s largest custodian, as its rival State Street edges closer to winning the title.

Assets under custody at State Street jumped 10% year-on-year in the third quarter to $32.7 trillion, just $100 billion behind BNY Mellon. Yet the Boston-based custodian also stated that it has around $390 billion in asset servicing assets remaining to be installed in future quarters. 

*The article was updated to show BNY Mellon had won the First State Investment ICVC fund, and not its £127.5 billion global business.*