ABN Amro outsources E75bn to State Street
NETHERLANDS - ABN Amro Asset Management has agreed to outsource fund administration and investment operations to State Street in a deal comprising 75 billion euros in assets.
They two companies said they had "reached an agreement whereby State Street will provide fund administration and investment operations services" for ABN Amro AM in Europe.
They said: "The assets under management within scope of this agreement are 75 billion euros." Financial terms of the deal were not disclosed.
ABN Amro follows Abbey National and AXA in signing large outsourcing arrangements with State Street. The Boston-based firm will provide the services for the Dutch-based bank in the Netherlands, UK, Luxembourg and Sweden, phased in over a two-and-a-half year period.
"As part of the mandate, State Street will expand its operations in Amsterdam and develop a fund servicing centre with approximately 110 AAAM staff there transferring to State Street." It said that custody services are not part of the deal and "will remain with incumbent providers".
The statement said ABN Amro "conducted a careful review of solutions".
"We wanted a provider of the highest quality and reliability," said Bert Schouws, chief operating officer and chief financial officer ABN AMRO Asset Management. "Outsourcing our fund administration and investment operations will enable us to support our business more effectively and to focus on the investment process."
"We will put in place a structure for future growth while reducing costs and removing operational risk from our balance sheet."
Jay Hooley, head of investment servicing worldwide for State Street said the deal would enhance the group's "presence and capabilities" in the Netherlands.