Northern Trust to acquire UBS Asset Management's fund administration servicing units in Luxembourg and Switzerland, expanding its presence in the former and gaining local fund administration capabilities in the latter.
Following the transaction, which is expected to close in the second half of 2017, subject to applicable regulatory and fund board approvals and other customary closing conditions, Northern Trust will be a leading administrator by assets in the Swiss market.
Upon completion of the transaction, Northern Trust will become the fund administration services provider for funds with approximately CHF420 billion (USD413 billion) in assets, including UBS Asset Management's traditional funds currently serviced by UBS Fund Management (Switzerland) AG or UBS Fund Services (Luxembourg) SA.
UBS clients will continue to 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.
“This agreement represents a significant opportunity for Northern Trust and our clients as we broaden our scale, products and market reach across Europe,” says Northern Trust Corporation chairman and chief executive officer Frederick H Waddell (pictured). “We look forward to expanding our service offering in Switzerland and further deepening our presence in Luxembourg.”
Ulrich Koerner, president, UBS Asset Management, says: “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.”
Northern Trust has operated in Luxembourg since 2004, and the transaction will make Northern Trust a top 10 asset servicing provider in terms of assets under administration.
UBS Fund Management (Switzerland) AG, based in Basel, is the Swiss market leader in management company and white labelling services. Northern Trust will integrate the Swiss fund administration unit into its Global Fund Services business. The transaction will complement Northern Trust’s existing Swiss client base, which reflects more than 30 years of experience providing a range of investment management and asset servicing solutions to Swiss clients.
“The strong client franchise, together with the geographic footprint of the business in Luxembourg and Switzerland, make this an excellent strategic fit for our growing business in the region,” says Toby Glaysher, head of Northern Trust Global Fund Services, International. “Like Northern Trust, UBS Asset Management is committed to excellence, innovation and superior client service. These shared values will enable us to continue to differentiate ourselves with our clients, strengthen our position as a leader in these markets and position us for long-term global growth.”
Goldman Sachs International served as financial adviser to Northern Trust on the transaction.
