The European Fund Services division of the Bank of New York has won the mandate to service the retail fund management operation launched by Barcalys Global Investors (BGI). This is a much bigger win than two earlier mandates secured by the division: one to service the Brussels-based AXA B Fund and the other to support Euro SPDR, the exchange-traded fund family sponsored by Credit Lyonnais Asset Management. BNY president Gerald Hassell told the Financial Times today that he expects the BGI win to be followed by up to three similar contracts in the second quarter.
The recently upgraded RUFUS Platform inherited from the RBS Trust acquisition will be used to support the Open Ended Investment Company (OEIC) set up by BGI to house ten actively managed funds and one passive fund. The Bank of New York plans further improvements to RUFUS, having recently announced that it would work with Microsoft’s Visual Studio .NET to create its “Next Generation” European fund services technology platform.
The BGI OEIC was launched on 4 March and is being distributed via Independent Financial Advisors (IFAs) and the Fidelity Funds Network. BGI’s OEIC/unit trust assets under management total approximately 4 billion, positioning BGI, on entry to the retail market, as the twentieth largest OEIC/unit trust manager in the UK, according to the latest figures from the Investment Managers’ Association.
Jeffrey Tessler, General Manager Europe, The Bank of New York, said:
“We are delighted to be chosen by BGI, which joins our rapidly expanding client base of ‘blue-chip’ UK and continental European fund administration clients.
Recent mandates such as this, AXA B and Credit Lyonnais, are testimony to our clear market leadership in the growing European fund administration sector.”
Malcolm Smith, BGI, commented, “We are looking forward to working with The Bank of New York as we embark on the development of BGI’s new retail operation.”