UK-based Threadneedle Investments has outsourced its retail client services operations in Swindon to the Bank of New York.
Under the "lift-out" deal, BoNY will assume control of the Threadneedle unit from 1 October 2004. The bank says the operation will become a key element of its future retail client service offering in Europe. Threadneedle will become BoNY's largest transfer agency client.
David Sachon, head of distribution, Threadneedle, says: "This deal stems from our analysis of the major changes that will occur over the next decade as supermarkets, aggregators and platforms increasingly form the bridge between fund managers and clients.
"The challenge for our industry is to manage this potential reduction in business processing volumes whilst maintaining high quality service and containing unit costs."