BNY Mellon Asset Servicing has topped $500 billion in AuA in Ireland, an increase of 8% since the start of the year, as of April 30, and 50.16% growth since the start of 2010.
Through its subsidiary BNY Mellon Fund Services (Ireland) Limited, BNY Mellon is the largest fund administrator in Ireland, as ranked by Lippers Ireland Fund Encyclopaedia (November 2010).
The company cites swelling investor interest in exchange-traded funds and liquidity funds as the two primary drivers behind the growth in demand for its services, with Ireland quickly becoming the center of excellence for ETFs and administrative services. BNY Mellon is the largest global administrator for ETFs in terms of funds serviced and plan sponsors supported, with an excess of $200 billion AuA.
Further growth in its AuA in Ireland can be attributed to BNY Mellons acquisition of PNC Global Investment Servicing in July 2010. As well as adding nearly a dozen new clients to BNY Mellons mutual funds business, the acquisition saw a doubling of BNY Mellon’s European Alternative AuA alone, and helped propel BNY Mellon to its rank as the third largest provider of alternative asset services globally.
Looking to the future, BNY Mellon says that included in the definition of short-term money market funds is the facility to issue a variable net asset value. Given the changing regulatory framework globally this may offer alternative solutions for promoters offering liquidity products and as a result, could result in opportunities for fund administrators like BNY Mellon, who specialize in servicing both constant and variable NAV funds.
Ireland continues to play a very strong role in the European funds industry, says Rachel Turner, head of BNY Mellons fund servicing team in Ireland. Ireland, like other EU fund jurisdictions, is ready for the introduction of UCITS IV in July, which will present opportunities, and we are seeing a lot more QIFs, ETFs and, still, money market funds. We are also seeing a lot more interest from managers in the US and Asia. These positive indicators show that despite the ongoing economic challenges in Ireland, the funds industry continues to flourish.
(CM)