Clearstream has launched its new fund distribution support business, Clearstream Fund Center, after it completed the acquisition of a majority stake in UBS’ Fondcenter.
The formation of the business includes the combination of Clearstream’s existing Fund Desk and will service over $290 billion of assets under administration.
As part of the deal, UBS has also entered into a long-term commercial cooperation agreement for the provision of services by Clearstream Fund Centre. UBS will retain a minority stake of 48.8% in the business.
“Fondcenter’s fund platform business perfectly complements Clearstream’s existing fund distribution support services. With the newly combined Clearstream Fund Centre, fund distributors will now have access to contracts covering over 70,000 funds worldwide. We are delighted that we can offer this comprehensive portfolio to our existing and future client base,” said Bernard Tancré, CEO of Fondcenter and head of investment fund services product, Clearstream.
Fund distributors have increasingly outsourced resource-intensive distribution support services, such as fee management and research as well as the management of fund data and documentation.
Clearstream stated asset managers will benefit from its global client network, which brings additional reach and efficiency in the distribution of investment funds.
“In Clearstream, we have a trusted owner to further develop and grow the business. The combined Fund Centre platform is well-placed for the future and we wish the team every success as they take the business forward,” added Michael Kehl, head of products, UBS Asset Management.
Clearstream announced the acquisition of the majority stake in Fondcenter in January in a deal worth $400 million.
The Deutsche Boerse-owned central securities depository (CSD) has been actively boosting its fund services and distribution capabilities over the last two years, beginning with the acquisition of London-based funds platform Swisscanto Funds Centre (SFCL) from Zurcher Katonalbank, announced in April 2018. Just weeks later, Clearstream then announced it would take over the managed fund administration business of National Australia Bank (NAB).