Italian boutique firm Ersel Asset Management has appointed State Street to provide a range of investment services.
State Street currently provides depositary services for Ersel’s mutual funds and will now provide net asset value (NAV) calculation and transfer agency services for its entire fund range as well as middle-office services for its mutual and hedge funds.
The appointment signals further interest from boutique asset managers looking for providers who can offer full administrative, middle office and back office solutions for their needs.
A recent survey of boutique asset managers commissioned by State Street showed that while boutique managers are in a good position to capitalise on investors’ ”hunt for alpha” through diversification, many boutiques need to overcome limitations in their own internal systems. For example, 32 per cent of boutique managers said that their operational/IT infrastructure was in need of “some” or “considerable” improvement.
Alberto Pettiti, chief operating officer and deputy general manager, Ersel Asset Management, says: “The process through which Ersel decided administrative outsourcing of activities was based primarily on the quality of the services provided, as observed in the processes of State Street, which is vital for any business that chooses to outsource parts of their operations.”
Riccardo Lamanna, senior vice president and head of State Street’s global services business in Italy, says: “We recognise that the increasing challenges facing boutique firms can distract them from their core business, so are continually working to provide complete back and middle-office solutions. This appointment is further indication of boutique investment managers’ confidence in our full service solutions.”