aller au menu aller au contenu

Outsourcing asset servicing activities: a winning strategy for investment managers

Four years ago, you launched a request for proposals (RfP) to outsource the operational and administrative services of your traditional investment funds. What was behind that decision?

This decision was of strategic importance for our company and while it was not an easy one to take or to announce to our clients, the reality was very simple. Faced with an increasing regulatory burden, which entailed considerable technical investment, we had to rethink our business model.

The reasons were twofold: firstly, we were extremely keen to ensure our clients continued to receive a high quality of service and, secondly, we wanted to consolidate our ongoing development by drawing on the support of a strong partner offering us access to a network and techniques that would have been very costly to develop internally. We therefore decided to outsource the custodian bank, administrative agent, paying agent and transfer agent services, while remaining the single point of contact for our clients.

Why did you choose CACEIS as your single service provider?

Our priority was securing employment. Only service providers committed to transferring around one hundred employees under certain non-negotiable conditions were shortlisted. Then, based on specific criteria, we carried out a comprehensive review of the services of each prospective provider, while also considering other criteria before whittling our choice down to CACEIS (which is well established and recognised in Luxembourg, but also has an operational culture that is similar to our own).

An exclusive negotiation period then followed, during which teams from CACEIS and Edmond de Rothschild were able to agree on the details of the means to be implemented so that the quality of service – which has always come first for us – would remain unchanged.

One year after the funds were migrated, what is your assessment of your partnership with CACEIS?

As is the case for all projects involving providers from two different worlds (“tailormade” service versus “large-scale” service), there were differences of opinion in the beginning.

However, CACEIS was quickly able to adapt to our approach and our vision of services aimed at highly demanding institutional clients, thus enabling us to deliver an exemplary quality of service. We are building on our strong partnership by constantly looking at ways of improving and developing our commercial offering. 

We are now more efficient and better placed to participate in innovative projects, such as virtual currencies.

This new business model has surpassed our expectations and has enabled us to launch many new sub-funds for our existing clients, but it has also allowed us to acquire new clients that we would not necessarily have been able to attract with the old model.

This project has not only allowed us to address the momentum of change, but also to measure ourselves against a vision of the industry that is different from our own in order to ultimately get the best of the two models. We all agree on this subject: four years after launching this transformation, the results show that we were right to innovate and to embark on this exciting human adventure.