BNY Mellon has completed the onboarding of the fixed-income portfolios of South Korea’s National Pension Service (NPS), the world’s third largest pension fund.
In addition to custody solutions the banking group provides for NPS’s fixed-income assets, the expanded remit will deliver a range of services through its securities services platform OMNI, helping transform NPS’s operating model across the front, middle and back office.
The services include middle-office solutions such as trade processing and validation capabilities, and investment book valuations; institutional accounting solutions including valuation of assets across the globe and compliance reporting; and global risk solutions including performance measurement and analytics, and compliance reporting.
The expansion of the integrated solutions offering will help NPS further optimize its global investment management process, allowing for greater focus on investment strategy and delivering value for its members, BNY Mellon says. The solutions also seek to improve operational efficiencies and help manage increasingly rapid changes in investment and regulatory complexities, as NPS expands its global footprint across key financial hubs in London, New York and Singapore.
“Korea is an important growth market for BNY Mellon in Asia-Pacific,” says Fangfang Chen, the bank’s Asia-Pacific chair and Asia-Pacific head of asset servicing and digital. “This mandate is testament to the strength of our franchise and underlines our firm commitment to Korea.”
BNY Mellon has operated in Korea since 1988 with the establishment of the Seoul branch office, and currently services major institutional clients in the country across asset owner, asset manager, bank and insurance sectors. BNY Mellon became a global custodian for NPS in 2018 and in the same year, opened a representative office in Jeonju, where NPS is headquartered, to better serve the client.
As of October 2021, NPS had total assets under management of 918 trillion won (US$767 billion), with 55% invested globally.