Chicago-headquartered investment firm Northern Trust has reached an agreement with Swiss group UBS AG for the acquisition of UBS Asset Management’s fund administration servicing units in Luxembourg and Switzerland.
The acquisition aims to expand Northern Trust’s footprint in Luxembourg where it is present since 2004 and gain local fund administration capabilities in Switzerland.
The transaction is expected to close in the second half of 2017, subject to applicable regulatory and fund board approvals.
Once the deal completed, Northern Trust will become the fund administration services provider for funds with around CHF420bn (€393.9bn) in assets as of end-December 2016, including UBS Asset Management’s funds currently serviced by UBS Fund Management (Switzerland) AG or UBS Fund Services (Luxembourg) S.A.
UBS stated that its clients will still be supported by their current relationship management teams following the transaction and UBS Asset Management will continue to offer management company, white labelling and representative services to its clients.
Northern Trust will integrate the Swiss fund administration unit into its global fund services business.
“This agreement represents a significant opportunity for Northern Trust and our clients as we broaden our scale, products and market reach across Europe,” Northern Trust Corporation’s chairman and CEO Frederick Waddell said.
“We look forward to expanding our service offering in Switzerland and further deepening our presence in Luxembourg,” he added.
Ulrich Koerner, president UBS Asset Management, 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,” he commented.
Founded in 1889, Northern Trust provides wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals.
As of 31 December 2016, the company had assets under custody of $6.7trn (€6.3trn) and assets under management of $942bn (€886.5bn).