F&C signs outsourcing deal

F&C ASSET Management (F&C) yesterday signed a deal to outsource the management of some £106 billion in assets to financial services group State Street.

State Street will provide F&C, and its subsidiary Thames River Capital, with services including investment operations, custody, fund accounting, trustee, securities lending and transfer agency. As a result of the mandate, 102 employees will transfer to State Street including four jobs from F&C's 130-strong team in Edinburgh. Alain Grisay, chief executive of F&C said: "We are delighted to have agreed a partnership with State Street to ensure that F&C remains well-positioned to deliver best-in-class investment operations and technology solutions.

"This agreement will improve operational efficiency and is a major step forward in introducing long term flexibility in our cost base which will benefit both our clients and shareholders."

F&C shares fell 0.9p to 73.7p.