PGGM Vermogensbeheer, the investment management arm of Dutch pension fund administrator PGGM, has appointed BNY Mellon to provide depositary services under the Alternative Investment Fund Managers Directive (AIFMD) for assets valued at €14 billion.
In addition to safekeeping the funds’ assets, which are held within five fixed income investment funds, BNY Mellon will provide oversight functions and perform cash monitoring as required by AIFMD. The depositary will handle the safekeeping of financial instruments and other assets; ensure proper and effective monitoring of the fund’s cash flows; carry out various monitoring and oversight tasks; and implement client reporting and escalation procedures to the manager and regulators in the event of breaches.
Based in Zeist in the Netherlands, PGGM provides pension management, integrated asset management, management support and policy advice for pension funds. PGGM manages about €160 billion assets (as at March 2014) on behalf of more than 2.5 million Dutch participants.
The new mandate extends BNY Mellon’s long-standing custodian relationship with PGGM. BNY Mellon currently services fund assets valued at €1 trillion and over 1,600 funds across the region. BNY Mellon will serve PGGM Vermogensbeheer’s assets through its Amsterdam branch.
Leonique van Houwelingen, country executive for the Netherlands at BNY Mellon, says: “We are well-placed to provide comprehensive support for our clients as they prepare for the far-reaching changes that AIFMD will bring. In addition to new requirements around reporting, operational, technology and control infrastructures, the Directive mandates the segregation of risk management and valuation functions from portfolio management.”
Van Houwelingen adds: “BNY Mellon has maintained a substantial operational presence in the Netherlands over the years. We are committed to leading the way when it comes to supporting Dutch fund managers impacted by AIFMD. The depository bank function is already a key element of our regional offering, and we have a well-established and robust track record in this space in Belgium, Germany, Ireland and Luxembourg.”
Dutch Manager Appoints BNY Mellon as Depositary Services Provider
PGGM Vermogensbeheer, the investment management arm of Dutch pension fund administrator PGGM, has appointed BNY Mellon to provide depositary services under the Alternative Investment Fund Managers Directive (AIFMD) for assets valued at €14 billion.
« J.P. Morgan's AuC Rises 10%, While Total Revenue Declines