Northern Trust has entered into an agreement with UBS Group to acquire UBS Asset Management fund administration servicing units in Luxembourg and Switzerland.
Upon completion of the transaction, expected by the second half of 2017, Northern Trust will become the fund administrator for funds with approximately $413 billion in in assets currently serviced by UBS in the two countries.
The move will enable Northern Trust to expand its presence in Luxembourg, where it has operated since 2004, as well as gain local fund administration capabilities in Switzerland.
“This agreement represents a significant opportunity for Northern Trust and our clients as we broaden our scale, products and market reach across Europe,” said Frederick Waddell, Northern Trust Corporation chairman and CEO.
“We look forward to expanding our service offering in Switzerland and further deepening our presence in Luxembourg.”
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 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,” said Ulrich Koerner, president of UBS Asset Management.
“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.”