Robeco Institutional Asset Management will outsource custody, securities lending and other parts of its business to J.P. Morgan Chase & Co. by 2021, the Dutch money manager said in a news release Wednesday.
Custody of Robeco's €122 billion ($149 billion) in institutional assets under management will transfer to J.P. Morgan. In addition, J.P. Morgan will provide fund accounting, operations, depository services, transfer agency and securities lending. However, the outsourcing will not lead to any investment policy changes or portfolio manager changes, Robeco said in the news release.
"As a consequence of the global playing field and increasing complexity, asset managers need a specialized operations provider with a global presence. Given the impact of this decision on our people, this is not a decision that we have taken lightly, and we will implement the outsourcing with the greatest care for the people involved. However, we believe that outsourcing is a necessary step that will help us continue to deliver excellent service to our clients worldwide," said Gilbert Van Hassel, CEO of Robeco, in the release.
Once the transition is complete, Robeco will have laid off 70 employees based in Rotterdam, Netherlands. A spokeswoman could not be reached to provide more details.