Northern Trust has agreed to acquire UBS Asset Management's fund administration servicing units in Luxembourg and Switzerland for an undisclosed sum.
The acquisition will expand US-based Northern Trust's reach in Luxembourg. In Switzerland, the company's local fund administration capabilities are expected to grow following the deal.
It will complement Northern Trust’s present client base in Switzerland, which it claims to reflect over 30 years of experience delivering a spectrum of investment management and asset servicing solutions in the region.
Northern Trust chairman and CEO Frederick Waddell said: “This agreement represents a significant opportunity for Northern Trust and our clients as we broaden our scale, products and market reach across Europe.
“We look forward to expanding our service offering in Switzerland and further deepening our presence in Luxembourg.”
Slated to close in the second half of the year, the acquisition would have to meet related regulatory and fund board approvals along with mandatory closing conditions.
Northern Trust will integrate the UBS fund administration unit in Switzerland into its Global Fund Services business.
Northern Trust will transform into a fund administration services provider having funds of nearly CHF420bn ($413bn) after the acquisition.
The funds will be in the form of assets that include traditional funds presently serviced by UBS Fund Management (Switzerland) or UBS Fund Services (Luxembourg) as of 31 December 2016.
UBS Asset Management president Ulrich Koerner said: “We continue to drive the transformation of our platform to further increase efficiency and effectiveness. This move will enable us to further focus our efforts on helping clients address their global investment challenges, while ensuring their fund administration needs continue to be well served.
"We believe the transaction and ongoing collaboration with Northern Trust is a compelling proposition for our clients, who will benefit from the combined resources and capabilities of UBS Asset Management and Northern Trust, along with our mutual commitment to innovation and an industry-leading platform.”
Upon completion of the transaction, the clients of UBS will not have any change in the support provided by their existing relationship management teams.
Also, the Swiss investment manager will continue to provide white labeling, management company and representative services to its clients.
Image: UBS WMA Headquarters at Lincoln Harbor in Weehawken, New Jersey, US. Photo: courtesy of Arnapoli/Wikipedia.org.