BNY Mellon has been selected as custodian and securities lending agent for the world’s first exchange traded fund (ETF) that tracks the robotics sector.
The ROBO Global Robotics and Automation Index ETF, which is listed on the US Nasdaq exchange, has seen its assets double in the last five months, crossing the $2 billion in assets under management threshold.
The asset servicing mandate was switched from Brown Brothers Harriman to BNY Mellon.
"Investors across the world are embracing robotics and artificial intelligence investment. By appointing BNY Mellon as our asset servicing provider, we have now established a robust foundation to meet the needs of our investors throughout their investment lifecycle,” said Travis Briggs, CEO, ROBO Global US.
The ETF market has become an increasing target for BNY Mellon after the custodian made a strong push to onboard a wider variety of ETFs onto its platform.
In addition to providing core custody, fund accounting and administration, it offers issuers trading, collateral, funding and liquidity management.
At the end of 2017, BNY Mellon had supported 37 issuers across the US and Europe with more than $424 billion in total net assets.
“We pride ourselves on our ability to deliver a technology platform, services, and depth of expertise that scales to the needs of fast-growing ETF issuers. This new appointment speaks to the power of our holistic approach,” added Jeff McCarthy, CEO, exchange traded products, BNY Mellon.