MUFG Investor Services, the global asset servicing group of Mitsubishi UFJ Financial Group, has completed the acquisition of Rydex Fund Services, a 1940-Act mutual fund administration business, from Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners.
This deal complements MUFG Investor Services’ full service offering for alternative investment managers, adding regulated 1940 Act mutual fund and exchange traded fund services expertise to a comprehensive service proposition, which spans single manager, fund of hedge fund, private equity, real estate and infrastructure funds, pension funds and traditional asset managers.
The acquisition adds $52 billion assets under administration (AuA) and brings the total AuA for MUFG Investor Services’ to $422 billion. The assets serviced by Rydex Fund Services primarily consist of Guggenheim and Rydex branded mutual funds, exchange-traded products and closed-end funds, for which Guggenheim Investments will continue to serve as investment advisor.
Junichi Okamoto, Group Head of Trust Assets Business Group, Deputy President, Mitsubishi UFJ Trust and Banking Corporation 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.”
Michael Rucci, Chief Executive Officer, MUFG Fund Services (USA), 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.”
Nikolaos Bonos, Head of Rydex Fund Services, commented: “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.”
MUFG Investor Services has acquired all of Rydex Fund Services’ business and intends to provide a seamless transition for its employees and clients.