MUFG Acquires Rydex Fund Services from Guggenheim Investments

The deal will allow MUFG to respond more dynamically to its clients’ needs while supporting their growth ambitions.

MUFG Investor Services, the global asset servicing group of Mitsubishi UFJ Financial Group, and Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, have announced that they have entered into an agreement in which MUFG will acquire Rydex Fund Services, a mutual fund administration business from Guggenheim Investments.

The acquisition demonstrates our commitment to supporting the growth of new clients and extending our services to existing clients.

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Completion of Full Service Offering

The deal will complete MUFG Investor Services’ full service offering for 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 and real estate funds, pension funds and traditional asset managers.

Junichi Okamoto, Group Head of Trust Assets Business Group, Deputy President, Mitsubishi UFJ Trust and Banking Corporation, 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.”

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The transaction will add $52 billion to MUFG Investor Services’ assets under administration (AuA) bringing total AuA 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.

Nikolaos Bonos, Head of Rydex Fund Services, added: “MUFG Investor Services will provide new opportunities for us to extend and enhance our ‘40-Act fund administration experience for the benefit of our current and future clients. 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 transaction is expected to complete in the fourth quarter of 2016.

 

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