Threadneedle swaps BNY Mellon for IFDS after service review

Threadneedle Investments has replaced BNY Mellon with IFDS Group as its transfer agent.

The move follows in an in-depth review on the level of service the asset manager is providing clients.

A spokesperson for Threadneedle told Wealth Manager: 'Following an in-depth review of the market Threadneedle is changing the transfer agent for our retail funds to enable a more integrated service for our clients globally.

'We are working with IFDS and our existing transfer agent to ensure a smooth transition for all parties. We will be in touch with clients regarding timing and their interests will be at the centre of all decisions taken.'

IFDS is the third largest administrator to the UK funds industry. 

Last month Wealth Manager revealed 21 fund groups using IFDS back office service would use Euroclear's Crest system, in a groundbreaking move which would allow funds to be settled in a similar fashion to equities. M&G and Aberdeen have confirmed they will be using the system.

At the time Andy Rudd, product manager at Euroclear UK and Ireland, told Wealth Manager: 'We are delighted this important initiative is being supported by a major fund group M&G, in conjunction with their services provider IFDS.

'We believe that enabling them to be settled in the same way as equities and bonds will significantly broaden their appeal to investors that until now, preferred investing directly in those assets instead of using funds.'

Rudd said move should bring down distribution costs substantially, along with fund manager costs.

Threadneedle did not indicate that it had switched to IFDS to take advantage of this opportunity.