PENSCO Press Release
Opus Bank Announces Its PENSCO Trust Subsidiary Entered into Agreement to Become Successor Custodian for Morgan Stanley Retirement Account Clients Invested in Alternative Assets
IRVINE, Calif.--(BUSINESS WIRE)--Opus Bank (“Opus”) (NASDAQ: OPB) announced today that its wholly-owned subsidiary,PENSCO Trust Company (“PENSCO”), a leading tech-enabled alternative asset IRA custodian, with approximately $11 billion of custodial assets and 43,000 client accounts with investments in approximately 40,000 unique assets comprised of private equity, real estate, notes, cash, and other non-exchange traded assets, has entered into an agreement to be appointed successor custodian for certain Morgan Stanley Smith Barney LLC (“Morgan Stanley”) (NYSE: MS) clients’ self-directed individual retirement accounts, qualified plans, and other self-directed custodial accounts that are invested in alternative assets. The agreement contemplates that Morgan Stanley, and its approximately 16,000 registered investment advisors, may begin referring new Morgan Stanley accounts to PENSCO and that approximately $1.2 billion of assets in approximately 8,000 existing Morgan Stanley client IRA accounts invested in alternative assets will be transferred in bulk to PENSCO at the start of June of 2016.
Kelly Rodriques, President and CEO of PENSCO and Executive Vice President – Wealth Services of Opus, stated, “We are thrilled to have entered into this agreement with Morgan Stanley and look forward to becoming the trusted successor custodian for their clients who are invested in alternative assets, including private equity, real estate, notes and other non-traditional investments within their qualified self-directed individual retirement accounts.” Rodriques added, “We’re proud that Morgan Stanley recognized PENSCO’s extensive experience and expertise in acting as a custodian for alternative assets held in self-directed IRA custodial accounts. Our 25 year history of specialization, innovation, and success combined with PENSCO’s Alt-Nav™ technology solution, which received the award for ‘Most Innovative Technology Solution’ at this year’s HFM US Technology Awards, clearly separates PENSCO from any other alternative asset custodian.”
Patrick Hughes, SVP, Business Development, concluded, “We’re pleased to have won the confidence of Morgan Stanley on behalf of their clients. This serves as further validation of the important role PENSCO plays as a leading alternative asset custodian. We intend to leverage this achievement to meaningfully increase PENSCO’s client base, assets under custody, and market presence.”
About PENSCO Trust Company
PENSCO Trust Company has been helping investors use their retirement account funds to invest in real estate, private equity and other non-exchange traded assets since 1989. As the trusted custodian of approximately $11 billion in assets on behalf of 43,000 clients, PENSCO works with financial institutions, capital raisers and financial advisors, as well as self-directed investors who typically have a point of view about alternative investments based on their own knowledge or expertise and want to put their tax-advantaged retirement dollars to work in these opportunities. To learn more, visit www.pensco.com
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About Opus Bank
Opus Bank is an FDIC insured California-chartered commercial bank with $6.9 billion of total assets, $5.8 billion of total loans, and $5.2 billion in total deposits as of March 31, 2016. Opus Bank provides high-value, relationship-based banking products, services, and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. Opus Bank offers a suite of treasury and cash management and depository solutions and a wide range of loan products, including commercial, healthcare, technology, multifamily residential, commercial real estate, and structured finance, and is an SBA preferred lender. Opus Bank offers commercial escrow services and facilitates 1031 Exchange transactions through its Escrow and Exchange divisions. Opus Bank provides clients with financial and advisory services related to raising equity capital, targeted acquisition and divestiture strategies, general mergers and acquisitions, debt and equity financing, balance sheet restructuring, valuation, strategy, and performance improvement through its Merchant Banking division and its broker-dealer subsidiary, Opus Financial Partners. Opus Bank’s subsidiary, PENSCO Trust Company, is a leading tech-enabled alternative asset IRA custodian with approximately $11 billion of custodial assets and approximately 43,000 clients, which are comprised of self-directed investors, financial institutions, capital raisers, and financial advisors. Opus Bank operates 58 client experience centers, including 33 in California, 22 in the Seattle/Puget Sound region in Washington, two in the Phoenix metropolitan area of Arizona, and one in Portland, Oregon. Opus Bank is an Equal Housing Lender. For additional information about Opus Bank, please visit our website: www.opusbank.com.
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PENSCO Trust Company performs the duties of an independent custodian of assets for self-directed individual and business retirement accounts and does not provide investment advice, sell investments or offer any tax or legal advice. Clients or potential clients are advised to perform their own due diligence in choosing any investment opportunity as well as selecting any professional to assist them with an investment opportunity. Alternative investments are not FDIC insured and are subject to risk, including loss of principal. PENSCO is indirectly affiliated with a registered broker dealer and with a licensed small business investment company through Opus Bank (“Opus Affiliates”). Other than the Opus Affiliates, PENSCO is not affiliated with any financial professional, investment, investment sponsor, or investment, tax or legal advisor.
This release may include forward-looking statements related to Opus’ plans, beliefs and goals, which involve certain risks, and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The forward-looking information presented in this press release is not a guarantee of future events, and actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “intend” or “expect” or variations thereon or similar terminology. All such statements speak only as of the date made, and Opus undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.