Mellon Fund Administration has secured its first significant business win in Dublin. The bank has been awarded a comprehensive asset management and servicing mandate from HVB Group for the bank’s newly launched multi-manager funds. HVB Group is the first bank in Germany to launch a multi-manager programme for institutional clients in Europe. The UCITS-based programme consists of 12 asset classes and 24 portfolios, and is domiciled in Dublin.
The triumph is somewhat mitigated by the fact that Mellon Global Investments Limited will manage seven of the 24 portfolios for HVB Group through the Boston Company Asset Management, Mellon Equity Associates and Standish Mellon Asset Management Company.
However, Mellon is providing the HVB funds with a full set of services, including transfer agency as well as fund administration, through Mellon Fund Administration in Dublin. Mellon Trustees (Dublin) Limited will act as trustee for the funds, while ABN AMRO Mellon Global Securities Services will provide global custody services. Performance measurement and analytics will be provided through Russell/Mellon CAPS.
“Mellon was able to provide us with an end-to-end asset servicing solution, and has clearly demonstrated the value of its ability to integrate these services into a coherent and effective offering,” says Stefan Bub, board member for HVB Group’s Corporates & Markets business segment. “The fact that Mellon was also able to provide best-of-breed asset management services across a number of asset classes made it a very compelling proposition,” adds Dr. Harry Lusser, director of HVB’s multi-manager programme.
“Mellon recently emerged from a process of narrowing and refining its strategic direction to focus squarely on asset management and corporate and institutional services,” adds Jack Klinck, Mellon Europe Chairman. “Our ability to provide HVB Group with a seamless service which touches upon every element of the investment life-cycle confirms that this strategy is one that meets the needs of the market.”
HVB Group’s multi-manager programme differs from a fund-of-funds structure, in that individual mandates, rather than wholesale funds, are given to asset managers. The 12 asset classes of the program are: Global Equity, U.S. Large Cap, U.S. Small Cap, European Equity, Japanese Equity, Asia Pacific Equity, Emerging Markets Equity, Global Bonds, Global High Yield, U.S. Bonds, European Bonds, and Emerging Market Bonds.