IGM Financial to shift fund services functions to CIBC Mellon

One of Canada’s largest investment managers mandates CIBC Mellon for fund administration servicing, in addition to the existing custody services that the bank provides.

By Joe Parsons

IGM Financial, one of Canada’s largest investment managers, will transition its fund services functions to CIBC Mellon.

This will add fund administration servicing, to the existing custody services that CIBC Mellon provides for over $160 billion of IGM’s assets.

The move is part of an ongoing five-year transformation plan to modernise IGM’s digital platforms and technology infrastructure, in order to enhance operations and achieve efficiencies.

“Having CIBC Mellon support our fund services operations will allow us to leverage their scale and technology, so we can focus on our core business of working with our clients to help them achieve their financial goals and aspirations.,” said Jeff Carney, president and CEO, IGM Financial.

The mandate, which is expected to close in November, will include the transition of around 100 of IGM’s fund services staff in its Toronto and Winnipeg offices to CIBC Mellon.

CIBC Mellon will also open a new office in Winnipeg following the mandate – its eighth office across Canada.

“We are delighted to extend our already strong asset servicing relationship with IGM, and we are proud to support them as they build scale, modernize technology and mitigate operational risks,” added Steve Wolff, CEO, CIBC Mellon.

CIBC Mellon, which is part of the BNY Mellon group, currently holds assets under custody and administration of $1.9 trillion, as of 30 June 2019, on behalf of banks, pension funds, investment funds, insurance companies, foundations and global financial institutions with clients in Canada.

CIBC Mellon attracted the most responses in Global Custodian’s 2019 Agent Banks in Major Markets Survey, where it beat the global survey average in a number of categories including asset safety, asset servicing, cash management and FX, and relationship management.