In Brief: Custody Account Shifts: Bank of N.Y. to Chase

Chase Manhattan Bank scored a coup last week by snaring a $2.2 billion custody account from Bank of New York.

United Asset Management Corp., a Boston-based money management firm, transferred the custody of 37 mutual funds to Chase's global investment services unit.

"We want to win as much business as we can and it's helpful to retain a prestigious client such as United Asset Management," a Chase spokesman said.

United, which controls $148 billion of assets, is a holding company for 45 money management firms, a structure that is considered innovative in a field dotted with entrepreneurial boutiques.

Custodians keep safe all securities and cash owned by a mutual fund. They also collect all income owed to the fund. Banks have traditionally provided these services to mutual fund companies.

Chase, the second-largest custodian of U.S. mutual fund assets, hopes the deal with United will reinforce its position in the growing global custody business, according to the spokesman. Global custody is booming as more U.S. institutions invest overseas to boost returns.

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