Old Mutual Investment Partners has signed a deal handing the majority of its managed accounts operations' back and middle office operations to Mellon Global Securities Services, a subsidiary of Mellon. Previously, Old Mutual relied on a number of different outsourcing partners to serve the back offices of its various divisions.
Mellon Global Securities Services leverages the accounting capabilities of its Eagle Investment subsidiary to compete head-to-head with State Street Global Advisors and other global back-office administrative service providers. Mellon manages $675 million through its investment subsidiaries and collectively administers and custodies at least $3.6 trillion.
Mellon and State Street have grown sizeable administrative business by capitalizing on a trend in which institutional asset managers have cut costs by outsourcing peripheral businesses like administrative services and concentrated on core investment management businesses.
"We were impressed with Mellon's experience, scalable infrastructure and commitment to the separately managed account space," said Kevin Hunt, executive vice president and head of sales, marketing and product development for Old Mutual Asset Management.