J P Morgan disappointed as F&C opts for Mellon
EUROPE – The merged F&C Asset Management has opted to continue its outsourcing relationship with Mellon Financial Corp., resulting in a loss for a “disappointed” J P Morgan Investor Services.
F&C said in a statement that it has reached heads of agreement with Mellon to outsource a number of operational functions across the enlarged group, formed with the merger between F&C and ISIS Asset Management. Financial terms were not disclosed.
Prior to the two firms’ merger this summer, F&C had an outsourcing agreement with Mellon while ISIS had a similar deal with J P Morgan.
“We are disappointed not to have been selected as outsourcing provider for the merged ISIS Asset Management and F&C organisation,” J P Morgan said.
“We have the capabilities to provide investment operations outsourcing to both the insurance and asset management sectors. Both ISIS and F&C remain significant clients of the bank in several areas.”
F&C institutional head Alain Grisay said: “Prior to the merger both F&C and ISIS were committed to outsourced operational models.
“Old-F&C had already outsourced to Mellon and we are confident that they can deliver the flexibility and high quality client servicing that we are looking for in the enlarged business.
“By outsourcing our operational administration we can focus on our core competencies and also ensure that costs are more closely aligned to revenues. The operational platform we will adopt will be scaleable to meet our growth ambitions.”
The deal will see around 50 former ISIS staff based in both Edinburgh and London have their employment transferred from F&C to Mellon.
F&C said it “believes that enhanced career prospects will be available for those staff working within a global business specialising in operational administration”.
“We in Mellon are delighted that F&C has recognised the quality of service we have been delivering to the ‘old-F&C’ and has now entrusted us with the continued outsourcing of its new, enlarged business,” said Mellon vice chairman Jack Klinck.