BNY Mellon has completed the onboarding of fixed income assets from the National Pension Service of Korea (NPS), the world’s third largest pension fund.
The mandate includes $25 billion of NPS’s assets invested in overseas fixed income markets, Global Custodian understands.
As part of the agreement, BNY Mellon now provides global custody, fund accounting, performance, compliance, securities lending and data solutions to NPS.
“By working with BNY Mellon which is one of the world’s largest global custodians, we have a trusted partner that enhances our management and administration capabilities in safeguarding our global assets,” said Sung Joo Kim, chairman and CEO of NPS.
The completion of the onboarding process comes just three months after NPS agreed to the deal with BNY Mellon.
“We are delighted to complete the onboarding within a relatively short period of time, and to the requirements of NPS. This mandate markets yet another major milestone for BNY Mellon in Asia, and underlines our commitment to the Korean market,” added Rohan Singh, head of asset servicing Asia-Pacific, BNY Mellon.
BNY Mellon and rival global custodian State Street are both reportedly set to open a new office in Jeonju, a southern Korean City and home to NPS.
NPS also re-signed a deal with State Street to outsource its middle-office to the Boston-based custodian, as well as use its global custody and fund administration services for their global equity portfolio.
As of November 2018, NPS’s total assets under management reached $576 billion, of which $175 billion is invested globally across 68 markets.