UK - Threadneedle Investments is in talks to outsource its investment operations to JP Morgan – a move which will entail the transfer of an unspecified number of staff to the US bank.
Threadneedle said it had entered into “exclusive negotiations” with the aim of appointing JP Morgan as its “chosen provider of outsourced investment operations services”. Financial terms were not disclosed.
They expect to finalise contractual arrangements during July and transfer operational control of Threadneedle’s Swindon-based investment operations to JP Morgan in October.
The move would be achieved with a “lift out” of Threadneedle’s operations covering confirmation and settlement, valuations and pricing, and accounting activities for all its funds.
Spokespersons for both firms were not immediately able to say how many staff would be affected. The amount of assets involved is "substantial", said a Threadneedle spokeswoman, without being more specific.
Threadneedle was advised by consulting firm Troika.
“We believe this is excellent news for our current and future clients,” said Threadneedle managing director Crispin Henderson.
“This deal allows Threadneedle to focus on its key strengths as a fund manager - providing excellent investment performance for its clients.”
The only real difference would be a change of operational control, he said – “the people, processes and systems will remain unchanged”.