MUFG Investor Services has agreed to purchase Guggenheim Partners’ 1940-Act mutual fund administration business Rydex Fund Services (RFS) for an undisclosed amount.
Incorporated in 1993, RFS is a fund administration, fund accounting, and transfer agency services platform for the Guggenheim’s intermediary product line.
RFS services over 230 Guggenheim products, including open-end mutual funds, variable insurance trust products, exchange-traded products, and closed-end funds.
MUFG in a statement said that when consummated the deal will complete MUFG Investor Services’ full service offering for investment managers.
The acquisition will add regulated 1940 Act mutual fund and ETF services expertise to its service proposition, which spans single manager, fund of hedge fund, private equity and real estate funds, pension funds and traditional asset managers.
The deal will add $52bn to MUFG Investor Services’ assets under administration (AuA) bringing total AuA to $422 bn.
Mitsubishi UFJ Trust and Banking Corporation deputy president and group head of Trust Assets Business Group Junichi Okamoto said: “The acquisition of Rydex Fund Services will strengthen our position as an industry-leading administrator and is an important part of our commitment to supporting the growth of new clients and extending our services to existing clients.
“This deal will add capabilities which will allow us to respond more dynamically to our clients’ changing needs, enabling them to fully realize new market opportunities and support their growth ambitions.”
MUFG Investor Services managing director and global head of business development and marketing John Sergides said: “We recognize the challenging environment our clients face and continue to enhance our offering to support the strategies that managers must deliver, both now and in the future. Our complete offering will allow us to become the partner of choice for alternative fund managers of all sizes, strategies and structures.”
Rydex Fund Services head Nikolaos Bonos said: “Aligning our team within the MUFG Investor Services group will enable us to respond to rising demand for liquid alternatives with a comprehensive service proposition that supports the development of investment managers’ businesses.”
The deal, which is expected to close in the fourth quarter of 2016, is subject to regulatory approvals and customary closing conditions.