M&G, the UK and European fund management arm of Prudential, is to outsource its retail administration services to International Financial Data Services (IFDS), the joint venture operation of State Street and DST Systems.
Under the agreement, M&G will migrate onto IFDS' Fast platform by the end of Q3 2003.
M&G's will also transfer its retail administration team to IFDS, but its customer contact and intermediary services will remain in-house. IFDS will also purchase two of M&G's properties for £10.6 million.
The fund manager says it expects to achieve annual cost savings of approximately £10 million from 2004 as a result of the deal.