The mandate will cover €14bn of assets which are held within five fixed income investment funds. In addition to safekeeping, BNY Mellon will provide oversight functions and perform cash monitoring.
The selection marks an extension of BNY Mellon’s long-standing custodian relationship with PGGM.
“BNY Mellon’s local presence and expertise in the Netherlands, our proven depositary and trust capabilities in Europe, and the flexibility we can offer were all key factors in PGGM’s decision to appoint us as their AIFM directive depositary,” said Leonique van Houwelingen, country executive for the Netherlands at BNY Mellon.
“We are well-placed to provide comprehensive support for our clients as they prepare for the far-reaching changes that the directive will bring. In addition to new requirements around reporting, operational, technology and control infrastructures, the directive mandates the segregation of risk management and valuation functions from portfolio management.
"Through our fully licensed Amsterdam branch, we are able to provide comprehensive depositary bank services in The Netherlands to ensure compliance before the final deadlines of each respective regulation.”
He added that BNY Mellon is committed to leading the way in supporting Dutch fund managers with complying with the AIFM directive.
Article 21 of AIFMD requires that an AIFM must appoint a single depositary for each alternative investment fund it manages.