MUFG Investor Services has closed the acquisition of Guggenheim Partners’ 1940-Act mutual fund administration business Rydex Fund Services from Guggenheim Investments.
Guggenheim Investments is an asset management and investment advisory business of Guggenheim Partners.
The acquisition will add regulated 1940 Act mutual fund and exchange traded fund services expertise to MUFG service proposition, spanning single manager, fund of hedge fund, private equity, real estate and infrastructure funds, pension funds and traditional asset managers.
The deal, first announced in August this year, will also add $52bn to MUFG Investor Services’ assets under administration (AuA) bringing total AuA to $422 bn.
Guggenheim Investments will continue to serve as investment advisor for the assets serviced by Rydex Fund Services that consists of Guggenheim and Rydex branded mutual funds, exchange-traded products and closed-end funds.
Mitsubishi UFJ Trust and Banking Corporation group head of trust assets business group and deputy president Junichi Okamoto said: “The acquisition of Rydex Fund Services is a key component of our strategic expansion and enables us to broaden our support of new and existing clients as they embark on new market opportunities. The deal significantly expands our capabilities and reinforces our position as one of the leading global fund administrators.”
MUFG Fund Services (USA) CEO Michael Rucci said: “Rydex Fund Services is a valuable addition to our business, particularly at a time when demand for liquid alternative strategies and their importance in portfolio construction are growing at a fast pace. Through this acquisition, we are perfectly placed to offer new and innovative solutions and ensure our clients take advantage of the best market opportunities.”
Rydex Fund Services head Nikolaos Bonos said: “This partnership is a significant step forward for Rydex Fund Services, as it will create greater opportunities for our employees and clients, and enable us to continue the growth of the business in the future. MUFG Investors Services’ strategic focus on asset servicing and commitment to invest in the client franchise make it an ideal partner for us.”