MSC wins $1.5bn abrdn trusteeship

abrdn has selected MSC Trustees to take on the duties of trusteeship and as responsible entity (RE) for the global manager’s suite of 10 Australian funds accounting for $1.5 billion funds under management (FUM).

The announcement comes after abrdn commenced its move from internal trusteeship under its existing Australian trustee entity, abrdn Australia Ltd, to external independent trusteeship. The appointment of MSC Trustees will see the firm acquire abrdn’s current entity on 1 July.

“Our successful appointment reflects the increasing presence of MSC Trustees in the institutional fund market and we look forward to working with the abrdn team to facilitate a seamless transition for all investors,” MSC Group Managing Director, Matthew Fletcher, said.

“We also look forward to working with all other parties providing professional services to the funds, including SG Hiscock, Citibank and Apex Group. This is a milestone appointment for the MSC Trustees business and cements our place as one of Australia’s major corporate trustees businesses.

“Local and international fund managers have been seeking more from their corporate trust and fund services partners for some time, as they navigate key industry trends such as ever-increasing access to information by investors, competition from globalisation, the rise of private equity and alternative assets, growing investor demand for cross-border investment opportunities, technology and capital structuring flexibility.

“The MSC Group’s business model is based on empowerment of fund manager clients, stepping up to meet their increasing commercial requirements.”

The trusteeship appointment also follows abrdn’s strategic partnership with SG Hiscock & Company to oversee the wholesale distribution of its two Australian equities funds in the Australian market. abrdn will continue to manage its other eight funds that focus on regional and global equities in both developed and emerging markets, global credit, multi asset and alternatives.

“The partnership with MSC Trustees will help us drive efficient, client-led, sustainable growth while maintaining a world class offering and delivering the best outcomes for Australian investors,” abrdn Deputy CEO of APAC, Ian Macdonald, said.

“By outsourcing the trusteeship & responsible entity duties, it allows us to focus on bringing our global investment capabilities into Australia in response to the increasingly competitive nature of the market.

“abrdn remains committed to the Australian market through differentiated investment solutions, managed accounts, active ETFs, sustainable investment strategies and digital advice.”