Bank of New York Mellon has announced that its alternative investment services business has passed USD200bn in assets under administration, reflecting rapid global growth in the firm’s ser
Bank of New York Mellon has announced that its alternative investment services business has passed USD200bn in assets under administration, reflecting rapid global growth in the firm’s servicing of funds of hedge funds and multistrategy hedge funds.
Over the past five years Bank of New York and Mellon Financial, which announced a merger in December 2006 and became a single company last July, have seen their combined hedge fund assets under administration grow from USD30bn to USD200bn, including a 94 per cent increase in assets under administration last year.
The merged company also has experienced significant growth in average fund size and the number of fund structures serviced in pursuit of its strategy to build long-term relationships with leading industry firms.
‘A milestone like this signals the confidence clients have in our ability to support their complex needs across the full spectrum of hedge fund services,’ says Bank of New York Mellon executive vice-president Brian Ruane. ‘We’ve posted consistently strong organic growth in our hedge fund administration business by customising our core operational and technology expertise.’
‘We estimate that more than half of all money flowing into hedge funds through 2010 will come from institutional investors, at which point institutional assets in hedge funds will exceed USD1trn globally. Retirement plans will account for about two-thirds of these asset flows.
‘As the trend continues, hedge fund managers will need to be able to provide institutional-quality services supported by an independent third-party provider. The Bank of New York Mellon offers the stability and custom reporting these clients demand.’
Bank of New York Mellon’s hedge fund administration business offers a global presence with operations in Bermuda, the Cayman Islands, Hong Kong, Ireland, Luxembourg, Singapore and the UK, as well as US offices in California, Florida, Massachusetts, New Jersey, New York and Pennsylvania.
In addition to hedge fund administration, the company offers a range of accounting, cash management, collateral management, custody, asset management and wealth management services to the hedge fund industry.
Bank of New York Mellon Corporation operates in 34 countries, providing asset management and wealth management, asset servicing, issuer services, clearing services and treasury services to institutions, corporations and high net worth individuals. The bank has more than USD23trn in assets under custody and administration and more than USD1.1trn in assets under management, and services USD11trn in outstanding debt.
