F&C Signs State Street to Provide Operations Outsourcing

State Street will provide investment manager operations outsourcing services for F&C Asset Management, it has been announced.

Along with the investment manager services for F&C and its subsidiary Thames River Capital, State Street will also provide outsourcing for custody, securities-lending and fund accounting among other areas on a global scale.

The deal is for F&C's £106 billion under management, and as a direct result, 102 employees of F&C in London and Edinburgh will transfer to State Street. International Financial Data Services, a joint venture between the company and DST systems, will handle the transfer agency aspects of the deal.

"As one of the first providers to offer investment manager operations outsourcing services, State Street has a decade of experience in servicing some of the most complex and global clients," says Joe Antonellis, vice chairman of State Street. "In the period of rapid expansion within the global markets over the past decade, many investment managers' legacy technology systems need significant investment to keep pace with the servicing requirements of innovative new investment strategies."

Alain Grisay, F&C's chief executive adds: "This agreement will improve operational efficiency and is a major step forward in introducing long-term flexibility in our cost base which will benefit both our clients and shareholders."