MUFG continues fund admin buying spree with Rydex deal

MUFG continues fund admin buying spree with Rydex deal

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MUFG Investor Services has completed a deal to buy Guggenheim Investments’ mutual fund administration business Rydex Fund Services.

The deal adds $52bn in mutual fund and ETF assets under administration onto MUFG Investor Services’ books.

MUFG, which acts as the asset servicing arm of Mitsubishi UFJ Financial Group, already has a strong alternative fund admin offering.

Junichi Okamoto, group head of trust assets business group, deputy president, Mitsubishi UFJ Trust and Banking Corporation, described the purchase as a “key component” of the firm’s expansion.

“It enables us to broaden our support of new and existing clients as they embark on new market opportunities,” Okamoto wrote in a statement. 

The move is the latest in a long line of fund administration mergers of late.

In May, MUFG wrapped up its acquisition of Capital Analytics, the private equity administration business of Neuberger Berman.

It also acquired UBS Asset Management’s Alternative Fund Services (AFS) business last year.

Elsewhere, last month, SS&C Technologies snapped up Wells Fargo Global Fund Services (GFS) business having purchased Citi's Alternative Investor Services business earlier in the year.

Michael Rucci, chief executive of MUFG Fund Services (USA), said Rydex Fund Services is a valuable addition, particularly at a time when demand for liquid alternative strategies and their importance in portfolio construction are growing at a fast pace.

Nikolaos Bonos, head of Rydex Fund Services, added that the deal was a significant step forward for Rydex, as it will create greater opportunities for our employees and clients, and enable us to continue the growth of the business in the future.

 

 

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