BNY Mellon Asset Servicing has converted more than 10 million shareholder accounts to its shareholder recordkeeping platforms during the first six months of 2011, a 60 percent increase over the number of accounts converted during the comparable period in 2010.
The increased distribution of mutual fund assets through financial intermediaries, rather than directly from the fund companies to investors, and the growing demand by investors for more complex investment products are the two primary trends driving the growth of the conversions to BNY Mellon’s recordkeeping platforms, the company says. BNY Mellon expects this growth will continue as broker-dealers move more traditional mutual funds and nontraditional accounts, such as 529 college savings plan accounts, to the subaccounting process.
“The increasing distribution of investment products through intermediaries and the growing complexity of these products have prompted asset managers to reevaluate their operating platforms,” Michael DeNofrio, head of US investor services within BNY Mellon Asset Servicing’s Global Financial Institutions business says. “As a result, a growing number of asset managers are enlisting third-party providers such as BNY Mellon to help them streamline their operations.”
Nancy Wolcott, head of US fund services for BNY Mellon Asset Servicings Global Financial Institutions business, adds: “Asset managers are looking to providers such as BNY Mellon who can be an extension of their organization by providing both back-office and middle-office services with tools that deliver the greatest transparency. The ability to confidently outsource theses operations enables asset managers to focus their resources to service the end investor.”
(CM)