Barclays Global Investors of London has chosen Investors Financial Service Corp. of Boston to conduct operations for Barclays' U.S.-based asset administration unit, Investors Financial announced last week. The contract is expected to become effective in the second quarter of 2001, according to a statement. The terms of the agreement were not disclosed.
Barclays Global Investors, the world's largest institutional investment manager, currently provides accounting, administration and other back-office functions for its clients through its asset administration unit. Barclays' asset administration unit serviced approximately $473 billion in assets as of March 31, according to Investors Financial. The unit will now become part of Investors Bank & Trust Company, a wholly-owned subsidiary of Investors Financial. When the deal is completed, Investors Financial will service over $787 billion in assets and will calculate 2,200 net asset values daily.
Investors Financial will retain the Barclays units' 275 professional employees, and the unit will remain in Sacramento, Calif. Investors Financial hopes to take advantage of this presence on the West Coast to form additional relationships with other large investment management companies.
"It enables us to focus on our core competencies of product development and investment management,'' said Andrea M. Zulberti, managing director and head of global operations of Barclays Global Investors.