General Motors Investment Management Corporation (GMIM) is outsourcing its middle and back office administration functions to the Windsor, CT headquartered financial services firm SS&C Technologies.
The deal covers $20bn in investment assets across a range of strategies.
GMIM is a wholly-owned subsidiary of General Motors Asset Management Corporation, which manages more than $160 in assets. General Motors Asset Management Corporation is itself an affiliate of the General Motors Corporation
Under the agreement announced today SS&C's outsourcing division, SS&C Direct, will provide full end to end investment management process outsourcing - including portfolio accounting, trade processing, custodian reconciliation, and reporting services - for approximately $20bn of GMIM's investment portfolios.
Commenting on the decision to outsource, Michael Cloherty, deputy chief operating officer for GMIM, said: "We believe the middle and back office outsource services market was mature enough for us to take the step to streamline our operational paradigm."
He highlighted SS&C's "long-term industry commitment as an outsourcing provider, its strategic commitment to technology solutions and the experience of its industry-focused service team" as key factors behind the deal.
SS&C said the outsourcing deal was a "multi year agreement".
Bill Stone, chairman and CEO of SS&C said middle and back office outsourcing was gaining traction in the US funds industry.
He said: "Outsourcing back office functions removes distractions and enables money managers to focus on making investment decisions."
"More and more we are seeing the trend toward asset management firms wanting to focus on what they do best for clients while needing a sustainable solution that allows them to grow and launch new funds quickly into the market," he said.
Founded in 1986, SS&C is perhaps best known as a financial software house and hedge and alternative fund administrator, with over $140bn in assets under administration. The firm's outsourcing division, SS&C Direct, went live out of its Windsor, CT headquarters in February 2008.
