BNY Mellon Says Subaccounting Platform Tops 100 Million Active Accounts Number of Accounts Nearly Triples since 2006
NEW YORK, July 17, 2012 /PRNewswire/ -- BNY Mellon, the global leader in investment management and investment services, announced that the number of active accounts on its subaccounting platform has nearly tripled to more than 100 million active accounts over the past five years.
BNY Mellon is one of the largest providers of shareholder recordkeeping, which comprises mutual fund transfer agency services and subaccounting services. It has been at the forefront of the industry shift from transfer agency to subaccounting as the preferred method of clearing mutual funds.
"In recent years, there has been an explosion of broker-dealers moving into the subaccounting environment," said Elisa Colkitt, head of subaccounting client services for BNY Mellon Asset Servicing. "Our team has been working hard to accommodate rising demand, while simultaneously streamlining and enhancing the platform to position our clients to significantly grow their enterprises over time."
BNY Mellon attributes the rapid growth of subaccounting to the increasing distribution of investment products through intermediaries, rather than directly from the fund companies to investors. The subaccounting platform meets the needs of these intermediaries, such as broker dealers and other distributors, who require aggregated information about the mutual fund holdings of their clients. Broker dealers using the platform are able to realize more efficient transaction processing and other cost savings efficiencies, while providing better service to their clients.
"As the distribution of investment products through intermediaries and the complexity of these products have increased, we have seen a growing demand for our subaccounting services," said Michael DeNofrio, head of Enterprise Investor Services within BNY Mellon Asset Servicing's Global Financial Institutions business. "We expect this growth to continue as many of our clients move more of their broker-controlled positions to the subaccounting platform. Additionally, we are now seeing a trend toward other account types, such as 529 plan accounts, migrating to the subaccounting recordkeeping model."
BNY Mellon is the second largest provider of mutual fund transfer agency services and is the largest provider of subaccounting services in the U.S., as ranked by The 2012 Mutual Fund Service Guide.
BNY Mellon Asset Servicing offers clients worldwide a broad spectrum of specialized asset servicing capabilities, including custody and fund services, securities lending, performance and analytics, and execution services. BNY Mellon Asset Servicing provides services through BNY Mellon and other related companies.
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $26.6 trillion in assets under custody and administration and $1.3 trillion in assets under management, services $11.9 trillion in outstanding debt and processes global payments averaging $1.4 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com or follow us on Twitter@BNYMellon.
SOURCE BNY Mellon