Babson Capital Management, a $128.9 billion asset manager, has outsourced its investment operations and technology services to State Street. The Boston-based custodian has provided custody, trustee, private equity and hedge fund services to Babson since 2001.
The announcement follows a week after OppenheimerFunds outsourced their back-office operations to Brown Brothers Harriman in a mandate that covers $155 billion in assets. GlobeOp has also been busy with the lift-out of investment management operations outsourcing services for European Credit Management, a specialist asset manager and subsidiary of Wells Fargo & Company with approximately 12.1 billion ($15 billion) in assets under management.
As the financial markets become more complex, the technology systems required to maintain and develop new investment strategies has increased substantially, says Jeff Conway, executive vice president and head of investment operations servicing and new business integration at State Street. Our experience in providing scalable solutions for asset managers investment operations helps them create additional efficiencies to achieve their growth objectives.
A recent survey on the investment administration outsourcing market carried out by CityIQ, in association with BNP Paribas Securities Services, revealed that while cost was important, evidence of executive commitment and the cultural fit between the parties was vital. Over 65% reported the service received from their provider was as good as or better than when the service was in-house.
Babson Capital is a member of the MassMutual Financial Group.
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