Threadneedle Investments and JPMorgan Chase Bank have today announced that they have signed the contract on 7th August to appoint JPMorgan as Threadneedle's chosen provider of outsourced Investment Operations services.
Threadneedle and JPMorgan expect to transfer operational control of Threadneedle's Swindon-based Investment Operations function to JPMorgan in October 2006.
The outsourcing will be achieved by way of an initial "lift out" of Threadneedle's operations covering confirmation and settlement, valuations and pricing, and accounting activities for all of Threadneedle's funds. JP Morgan plans to transition from the Threadneedle systems platform to the JPMorgan platform by early 2008.
Subsequently, Threadneedle's Swindon operations and staff will form an integral part of JPMorgan's expanded European service offering.
Crispin Henderson, Managing Director of Threadneedle Investments, said: "We are pleased to have finalised a deal which allows us to focus on our key strength as a fund manager. Our clients can look forward to the support from JPMorgan's strengths in service administration and commitment to providing state-of-the-art capabilities in derivatives and complex instruments."
Conrad Kozak, JPMorgan Securities Company Executive, said: "We are looking forward to working with a leading fund manager like Threadneedle, and as we continue to build upon our European outsourcing platform we think they will be an excellent partner. Their needs fit with our strengths. They needed a provider that can service derivatives and other complex instruments, which we already do and are expanding to ensure we stay ahead of our clients' needs. They also wanted continuity in the transition, so we are keeping their systems in place and welcoming their Swindon-based Client Services team."