Investec Asset Management has entered exclusive discussions with State Street to outsource its institutional administration.
Investec says the outsourcing arrangement will allow the firm to focus on fund management, whilst also (in a somewhat curious formulation) “taking advantage of the growing trend in the fund management industry to outsource administrative functions.” The firm adds that “by leveraging off the institutional technology platform of State Street, it will save on the future system costs and will also result in a more robust business model by introducing variability into the cost base. “
“I am delighted that Investec Asset Management has been able to be at the forefront of a landmark initiative that will not only help meet the strategic objectives of Investec Asset Management, but that will also act as the foundation of a significant venture for State Street, delivering long-term, sustainable benefits to clients and employees in both the UK and South Africa,” says Hendrik du Toit, Chief Executive of Investec Asset Management.
Jeff Conway, Senior Vice President of State Street for Northern Europe, Middle East and South Africa, added: “We’re extremely pleased that Investec Asset Management has chosen to enter in to exclusive discussions with State Street. We have a proven track record of providing investment operations support to the world’s leading asset managers, and we look forward to extending these services to Investec.”