Mitsubishi UFJ Fund Services is launching a suite of services for the administration of syndicated loan portfolios using the Wall Street Office (WSO) solution provided by Markit, a financial information services company.
The new solution will enable Mitsubishi UFJ Fund Services to service all trade and portfolio management activity, allowing asset managers to focus on their core role of selecting loans.
The services also eliminate the need for clients to maintain the considerable infrastructure and specialist team required to administer loan portfolios.
The demand for asset servicing solutions for syndicated loans has grown over the past year, as total volume for loans increased by 29 per cent to USD4.2trn in 2013, the strongest annual period for lending since 2007.
Ken McCarney, chief operating officer, Mitsubishi UFJ Fund Services, says: “We are first to market with a comprehensive solution that allows clients to trade loans without the need for additional people or systems in their operational teams. The introduction of this solution is a part of our wider development strategy as we seek to grow our business and the range of services we provide to the global investment industry.”
Mark Schultis, managing director at Markit, says: “Mitsubishi UFJ Fund Services is deploying an extremely comprehensive set of loan asset services. This offering makes it straightforward for asset managers to invest in syndicated loans while managing their operations with maximum efficiency.”
As a result of the partnership, Mitsubishi UFJ Fund Services will provide:
· Portfolio management services with web access to real time position and performance information;
· Cash and position reconciliation services (seamless straight through processing from Markit’s WSO solution to Mitsubishi UFJ Fund Services’ general ledger);
· Trade settlement services managed by a dedicated team at Markit using Markit Clear, Markit’s electronic trade processing platform for efficient settlement of syndicated loan trades;
· A single point of contact to assist in managing the trade through its entire lifecycle;
· Independent verification of both open and closed positions;
· Loan data services that manage the high volume of corporate actions information characteristic of syndicated loans;
· An electronic filing cabinet containing trade documentation, credit agreements and agent notices providing a hosted system for retrieving documents required for audits and compliance.