AXA Investment Managers says it has completed the outsourcing of its investment management operations to State Street. The deal – by which the American bank has taken over the middle and back office operations of what was until this year regarded as a house client of BNP Paribas – was a major coup for State Street and a blow to the French bank, which is seeking a flagship outsourcing client.
On 1 December, 201 employees in France and 16 in Germany joined State Street. The transfer of operations in the UK is scheduled to be completed by the end of the first quarter of 2005.
“The choice of State Street was based upon its proven expertise of securing large and complex investment operations mandates and a demonstrable track record of service delivery,” says Nicolas Moreau, Chief Executive Officer of AXA IM. “As we continue to grow our business, we are confident that State Street will be a key partner to assist in our servicing requirements.”
The outsourcing covers the middle office functions, fund accounting, performance measurement services, fund administration and investment operation support. It entailed the transfer of more than 300 AXA Investment Management employees and more than 1,500 portfolios to State Street, worth Euros 300 billion. WM Performance Services, the State Street subsidiary that offers performance measurement services, will also service AXA.
“This landmark mandate from AXA IM, the fourth major investment operations outsourcing appointment for State Street in Europe and the first ever mandate to a third-party service provider in France and Germany, demonstrates our ability to secure complex and multi-jurisdictional servicing business,” says Jay Hooley, Executive Vice President of State Street Corporation. “Key factors in our success are our ability to deliver a seamless and integrated global platform for our clients as well as our expertise and local presence in Europe. We are delighted to forge this agreement with AXA IM as we help them continue to expand their business globally.”