UBS offloads fund-admin divisions in Luxembourg, Switzerland


Northern Trust has expanded its operations in Europe after reaching a deal to acquire UBS Asset Management’s fund-administration servicing divisions in Luxembourg and Switzerland.

The deal – for which financial terms were not disclosed – is expected to close in the second half of this year, pending regulatory and board approval.

Frederick Waddell, chief executive at Northern Trust, said his company planned to expand in Switzerland and “further deepen” its presence in Luxembourg with the deals.

With the addition of assets serviced by UBS Fund Services in Luxembourg and UBS Fund Management in Switzerland, Northern Trust is set to increase its fund-admin assets under management (AUM) to more than 420 billion Swiss francs (393 billion euros).

US-based Northern Trust, which has more than 6.7 trillion dollars (6.3 trillion euros) in assets under custody and 942 billion dollars in AUM, said it planned to integrate the Swiss fund administration unit into its Global Fund Services business.

Goldman Sachs International served as financial adviser on the deals.

UBS AM said it would continue to provide management company, white labelling and representative services to clients.

Ulrich Koerner, president at UBS AM, said: “The transaction and ongoing collaboration with Northern Trust is a compelling proposition for our clients, who will benefit from the combined resources and capabilities of UBS Asset Management and Northern Trust, along with our mutual commitment to innovation and an industry-leading platform.”

Toby Glaysher, head of Northern Trust Global Fund Services International, cited the acquisitions’ “strong client franchise”, as well as their geographic locations.

According to UBS’s 2015 annual report, its most recent, its fund-servicing subsidiary in Luxembourg employs 143 people.

Northern Trust, which has been present in the Grand Duchy since 2004, employed 109 people as at the end of 2015.