Schroders has signed a six-year contract with International Financial Data Services (IFDS) to outsource its UK-based authorised unit trust administration.
Under the agreement, IFDS - a joint venture between State Street and DST International - will offer a full outsourced administration service for Schroders' UK institutional and retail unit trust fund ranges, effective in the first half of 2003.
The companies say the move will involve the redeployment of a number of staff from Schroders to IFDS.
Hugh Mullan, chief operating officer, retail of Schroders, says: “This agreement with IFDS allows Schroders to increase shareholder value by using a high quality, cost effective, outsourced service. In addition, it allows us to increase our focus on our core investment management business with our customers enjoying administration and client service delivered by world class specialists."
The move typifies a growing trend towards back office outsourcing in the UK investment sector, illustrated by the recent arrival of BNY Securities as a specialist provider to the London private client market.