Following the completion of an acquisition last week, BNY Mellon Asset Servicing announced Monday it has established a global financial institutions group to support clients and prospects in the banking, mutual fund and insurance sectors.
The group will be led by Nadine Chakar, who was head of Europe, Middle East and Africa asset servicing for Bank of New York Mellon [BK]. She will continue to report to Jim Palermo and Tim Keaney, co-CEO's of BNY Mellon Asset Servicing.
Within the group, Steve Wynne, who was chief executive officer of PNC Global Investment Servicing, will be chief executive officer of U.S. funds services. Nancy Wolcott, who was president of PNC Global Investment Servicing, will be head of U.S. funds services.
Lou Maiuri, currently the global head of outsourcing at BNY Mellon Asset Servicing and chairman of its Eagle Investment Solutions, will take on the expanded role of head of U.S. financial institutions, which includes investment managers, insurance companies and banks.
Frank Froud, who was the head of U.S. client management at BNY Mellon, returns to London to replace Chakar as head of EMEA asset servicing.
"Post-crisis, financial institutions around the world are facing unprecedented change,” said Palermo. “They are accordingly re-evaluating their business models to ensure they are aligned with the opportunities and priorities now presenting themselves. The creation of our GFI group in conjunction with our acquisition of the PNC Global Investment Servicing business, as well as our anticipated acquisition of BHF Asset Servicing in Germany, enhances our position as a premier partner to our financial institutions clients as they seek to take full advantage of the burgeoning global recovery.”
In an interview last week, Palermo said that BNY Mellon wants to expand its asset servicing business internationally. The company has identified several international markets over the past six to 12 months that it would like to expand into over the next two years, Palermo said, including Germany, Australia, China, South Korea, India, Brazil and the Middle East.
BNY Mellon expects to make more acquisitions to expand in these regions. Palermo said in August it expects to close its acquisition of Germany’s BHF Asset Servicing, which would move BNY Mellon from the 13th largest to the second largest asset servicer in Germany.
“We think that the German market is very important and very strategic for us,” he said. “It is the fourth largest economy in the world and they have a substantial pension and fund business.”
The acquisition of PNC’s Global Investment Servicing business, which closed last week, doubled BNY Mellon’s European asset base and made it the second largest provider of fund accounting, administration and transfer agency services to fund managers globally. It also expanded its industry-leading securities servicing and alternative investment services businesses worldwide; and enhances its managed account platform, performance reporting capabilities and business intelligence tools for Pershing’s broker-dealer and advisory business.
BNY Mellon now has over $23.2 trillion in assets under custody and administration globally. The acquisition, which closed for $2.31 billion including $1.57 billion of stock and repayment of intercompany debt from PNC, added $855 billion in assets under administration, including $460 billion in assets under custody, and doubles the number of funds serviced for accounting and administration.
"BNY Mellon is today the clear leader in providing securities servicing to financial institutions worldwide,” Chakar said. She said the GFI group “will lead the way in delivering innovative and tailored solutions and high quality service to our clients as they look to regroup and grow their businesses in the wake of the global financial markets crisis."