Schroders’ North American arm has outsourced the investment operations of its private client and fund business to the Bank of New York.
The agreement covers more than $3 billion of assets, which are managed by Schroders’ Philadelphia office.
The Bank of New York has assumed responsibility for a diverse range of operational functions, including trade support, fail management, data management, investment accounting, third party custodian reconciliation, performance measurement and end-client appraisals on a private label basis.
Mark A. Hemenetz, executive vice president and chief operating officer of Schroders, said, “We want to continue to focus on building our business and providing superior investment performance. The bank’s outsourcing solution enables us to focus on our core competency while effectively managing costs.”
Andrew J. Bell, managing director and head of BNY SmartSource, the BNY’s outsourcing business for global investors, said, “The trend toward a fully integrated outsourcing arrangement continues to accelerate, and we are pleased that our efficient, cost-effective outsourcing solution has been selected by Schroders, one of the world’s premier investment managers. We expect that other investment managers will benefit from our offering by enjoying a more cost-effective model than if they continue to service these functions in-house.”