German asset manager DWS is to transfer its fund administration unit to BNP Paribas Securities Services (BNPPSS).
The deal means BNPPSS, part of French bank BNP Paribas, gains €240 billion of assets under administration, including for custody and depositary services to DWS’s retail funds in Luxembourg and Germany.
DWS’s decision to outsource is part of a wider strategy of using external providers.
Jon Eilbeck, chief operating officer at DWS, said: “Transferring services, such as fund administration, to outside vendors is part of an overall programme to improve the way we operate and service our clients in an efficient and high quality manner as we continue our measures to manage our cost base.
“We are confident that an agreement will be beneficial to all parties involved, including investors in our funds and colleagues in DWS.”
Patrick Colle, general manager of BNPPSS, said the lift-out of DWS operations would enable BNPPSS to expand its franchise in Germany and Luxembourg and marked an “important milestone” in the development of its global funds business.
An earlier milestone for BNPPSS was reached last year when the business took on 100 staff and paid $36 million (€31 million) to lift-out many of Janus Henderson Investors middle and back office operations in the US.
Terms of the latest deal, including number of employees, are not being disclosed.
©2018 funds europe
