BNY Mellon sees huge Irish growth

INTERNATIONAL fund management group BNY Mellon said the amount of funds under administration in Ireland it controls has grown dramatically to more than $500 billion (€350bn).

Levels have shot up by over 50% since the start of 2010 and are ahead by 8% since the start of 2011.

BNY Mellon Asset Servicing is the largest fund administrator in Ireland, according to Lipper’s Ireland Fund Encyclopaedia in November 2010.

BNY Mellon said the future for Ireland as a base for fund administration remains extremely positive despite the country’s economic difficulties.

BNY has witnessed substantial investor interest in exchange-traded funds (ETFs) and liquidity funds as two primary drivers behind the growth in demand for its services.

It said Ireland was “quickly becoming the centre of excellence for ETFs and administrative services”.

BNY Mellon is the largest global administrator for ETFs in terms of funds serviced and plan sponsors supported, with in excess of $200bn assets under administration.

Further growth in its assets under administration in Ireland is down to the group’s acquisition of PNC Global Investment Servicing in July 2010.

“Ireland continues to play a very strong role in the European funds industry,” said Rachel Turner, head of BNY Mellon’s fund servicing team in Ireland.

Ireland is ready for the introduction of UCITS IV in July, “which will present opportunities” for further significant expansion in the sector, she said.

“We are also seeing a lot more interest from managers in the US and Asia. These positive indicators show that despite the ongoing economic challenges in Ireland, the funds industry continues to flourish,” Ms Turner said.

BNY Mellon opened its first office in Ireland in 1994 and received approval from the Central Bank to establish a new bank-licensed entity in 2009.

It currently employs more than 1,700 people at centres in Cork, Wexford, Navan, and Dublin. The company is a major provider of financial services for institutions, corporations and high-net-worth individuals. It has $25.5 trillion in assets under custody and administration.

BNY Mellon is the corporate brand of the Bank of New York Mellon Corporation.