UK – Citigroup Global Transaction Services is set to take over fund administration for Standard Life Investments in a deal that would see the US bank take over the administration of around 70 billion pounds (101 billion euros) of funds.
Standard Life spokesman Brian Simmons declined to say what the contract would be worth. He said Standard Life received tenders from a around six providers but declined to name those that were not successful. The deal is subject to a three-month evaluation period.
Simmons said the Edinburgh-based Citigroup division provides a “good cultural fit” for Standard Life, which is based in the same city. Around 90 Standard Life staff would transfer to Citigroup.
The move is part of a bid by Standard Life to strengthen its “global operational capabilities” to support its aim of becoming a top global fund manager.
Standard Life Investments’ operations director William Littleboy said: “Following careful consideration to partner with a global provider we have decided to enter into a detailed evaluation with Citigroup.
Standard Life has around five billion euros in European pension fund assets under management.
Sandy Jaffee, executive vice president of Citigroup said: “It is our goal to bring together the expertise and experience of Standard Life's investment administration and Citigroup's leadership in operations and technology, to build a world class, market leading Funds Administration unit here in Edinburgh.”
Citigroup Global Transaction Services has been undergoing something of a management revamp recently, following the departure of Teresa McGonagle to rival J P Morgan investor Services and the appointment of Mary Ambrecht and Jervis Smith as global product and sales heads respectively.