SS&C Technologies has expanded its existing outsourcing relationship with US asset manager Waddell & Reed to include transfer agency and compliance services.
Waddell & Reed, which as of May 2019 held $68.6 billion in assets under management, has been a client of SS&C since 1998, and its transfer agency subsidiary will now be using SS&C technology for its in-house mutual fund record keeping.
“We were impressed with SS&C’s long-term commitment as an outsourcing provider, its strategic commitment to technology and the expertise of its services team,” said Brent Bloss, chief operating officer, Waddell & Reed.
“SS&C’s integrated technology and services have been and will continue to be an important part of our success.”
Outsourcing core transfer agency services including processing, compliance and mail centre will enable Waddell & Reed to generate savings to reduce shareholder expenses.
The decision to outsource is part of Waddell & Reed’s strategic plan and will better position the company to achieve its growth and technology objectives.
Mike Sleightholme, senior vice president and general manager for SS&C Technologies, pointed out that around 20 of SS&C’s largest clients have outsourced some or all of their operational functions to the tech giant over the past two years.
“We expect this trend to continue as asset managers focus on their core competencies and move toward a cost-effective variable expense operating model,” Sleightholme added.