MUFG Investor Services has entered into an agreement with Guggenheim Investments to purchase Guggenheim’s 1940-Act mutual fund administration business, Rydex Fund Services.
The deal, which is still subject to regulatory approval, will complete MUFG’s service offering for investment managers.
The completion of the deal, due to take place in Q4 2016, will add $52 billion to MUFG’s assets under administration bringing its total to $422 billion.
“Demand for liquid alternative strategies has risen significantly in recent years as retail investors recognise the return potential and diversification benefits relative to traditional asset classes,” said John Sergides, MD, global head, business development and marketing, MUFG Investor Services.
“Our complete offering will allow us to become the partner of choice for alternative fund managers of all sizes, strategies and structures.”
Guggenheim will continue to serve as an investment advisor for current assets served by Rydex Fund services including mutual funds and exchanged traded products.
“Aligning our team within the MUFG Investor Services group will enable us to respond to rising demand for liquid alternatives with a comprehensive service proposition that supports the development of investment managers’ businesses,” said Nikolaos Bonos, head of Rydex Fund Services.
MUFG in fund admin boost
MUFG will now be able to offer a complete service offering to investment managers.