UOB Asset Management has made BNY Mellon Asset Servicing the trustee, fund administrator and custodian of its Cayman-domiciled United Asia Bond Multi Currency Fund.
The fund, which has about ¥5 billion ($50 million) in AUM, is part of UOB AM's United Multi Asset Strategy Fund.
This is the first time UOB AM, a subsidiary of Singapore's United Overseas Bank, has awarded BNY Mellon this type of business and has done so as a direct result of the US firm's Japanese expertise.
Masashi Ohmatsu, Tokyo-based Japan chief executive at UOB AM, says BNY Mellon has a proven track record of providing quality services to Japanese clients with Cayman-domiciled fund structures. BNY Mellon's local presence in Japan and its capabilities in the market are also important factors and give it advantages over some competitors, he adds.
Chong Jin Leow, head of Asia at BNY Mellon Asset Servicing, says the mandate recognises BNY Mellon's marketing effort and good reputation in the country, but also the fact that the offshore fund market continues to expand. It has been operating in Japan for decades, where its clients include the Government Pension Fund and Sumitomo Mitsui Asset Management.
It will be a multinational effort to provide all three services -- the trustee element will be serviced by BNY Mellon's Cayman operations, fund administration will be done in Singapore, custody on a global basis and client servicing out of Tokyo. Head of client services in Tokyo is Jared Optiz.
As offshore mutual funds' markets become more competitive, says Chong, the need for a strong global administrator that can help asset managers meet the changing requirements is more important than ever.
UOB AM is headquartered in Singapore, with regional business and investment offices in Malaysia, Thailand, Brunei, Taiwan and Japan.