British fund manager F&C Management said Friday it has been engaged in talks to relinquish control of $68 billion in assets to Mellon Global Securities in order to focus on its core competencies, Reuters reports.
F&C, a wholly owned subsidiary of Dutch insurer Eureko, is the latest fund company to outsource its back office operations in an attempt to improve efficiency.
Standard Life Investments inked a deal with Citigroup in June that handed over 70 billion pounds of assets. Meanwhile, M&G, Aberdeen, Schroders and Henderson Global Investors have all outsourced services including trade processing and settlement to third-party providers.
Under the proposed deal, which is still subject to consultation, 95 F&C employees would be transferred to Mellon effective Sept. 1, according to the report. "We will be able to focus on our main objective, which is portfolio management," said Robert Jenkins, the companys chief executive officer.
F&C manages 88 billion euros in assets. Mellon provides administrative services for investment management clients with $360 billion in assets.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.