Northern Trust wins Hermes Fund Managers outsourcing contract

Source: Northern Trust

Northern Trust has been appointed by leading investment manager, Hermes Fund Managers Limited ("Hermes"), to provide outsourcing services for middle office investment operations, fund administration and custody.

The anticipated middle office assets under administration will be GB pounds Sterling 23bn, (approximately US$45bn) while assets under custody services, which will include the BT Pension Scheme ("BTPS") - the UK's largest - will be in excess of GB pounds 45bn (approximately US$88bn). As part of the arrangement Northern Trust will also support the launch of Hermes' new range of Dublin-based funds providing trustee, custody, fund accounting and transfer agency services.

The appointment, which is subject to contract negotiations, is expected to be completed in the third quarter of 2008.

Commenting on the decision to outsource and select Northern Trust as its business partner for these services, Rupert Clarke, Chief Executive of Hermes said: "Northern Trust was appointed following a rigorous selection and due diligence process from a short-list of two providers. Throughout the process both providers demonstrated their expertise and capabilities in supporting Hermes' core requirements but Northern Trust distinguished themselves with their understanding of Hermes' business needs and their transition capabilities. Outsourcing these functions is consistent with our strategy of focusing on growing a specialist investment management business. Building a robust and progressive business platform to support our development is a key part of this. By partnering with Northern Trust, we are confident that these critical services will underpin the achievement of our goals."

Says Wilson Leech, global head of Northern Trust's Global Fund Services business: "We are delighted to have been chosen by this prestigious investment manager as their business partner. Outsourcing is a strategic focus for Northern Trust and an important part of our growing Global Fund Services business. By partnering with Northern Trust investment managers can benefit from our world-class capabilities and global strategic platform."

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