ABN Amro and Mellon create global custody venture
24 July 2002 | 7296 views | 0
ABN Amro Bank and Mellon Financial are to set up a separately capitalised joint venture company providing global custody services to clients outside North America.
The new entity, which will operate with a banking licence, formalises an alliance that has been in existence since November 1998. It will have 111 clients in 26 markets and over EUR 250 billion in assets under custody. Domiciled in the Netherlands, the new company will also have a branch in London, and will employ approximately 300 people, located in the Netherlands and the UK.
The move continues the process of consolidation in the global custody industry, as providers look to cash in on scale economies and provide added value services to pension fund clients. The top ten custodians currently control about 85% of assets under management, according to research by Celent Communications.
ABN Amro Mellon Global Securities Services will be the world's seventh-largest custodian bank. It adds the Dutch bank's global reach to Mellon's traditional strengths in technology.
Nadine Chakar, who has acted as managing director for the ABN Amro Mellon alliance since its inception, has been appointed as chief executive officer of the new company, and will head a managing board responsible for executive management. This will be overseen by a supervisory board consisting of four representatives from both ABN Amro and Mellon.
"In the past three years we have more than doubled our initial client base and assets under custody," says Chakar. "The proven success of our technology and the excellence of our people mean that ABN Amro Mellon is in an excellent position to grow and prosper."