The major bank UBS is gradually transferring its fund administration business in Switzerland and Luxembourg to Northern Trust. The transaction is still subject to regulatory approvals, according to a statement released on Tuesday.

The first area affected is investment funds for which UBS currently provides fund administration services itself. UBS’s Swiss and Luxembourg management companies plan to extend their existing agreement with Northern Trust to these funds.

The second area involves the former fund administration business of Credit Suisse in Switzerland and Luxembourg for traditional and alternative investments, which is to be transferred to Northern Trust. These activities were integrated into UBS as part of the Credit Suisse takeover.

Complete exit from administration

The transaction is expected to close in the second quarter of 2027. UBS will then withdraw from the fund administration business. The migration of services is to be carried out gradually over a period of two years.

UBS justifies the move in part by pointing to the growing importance of technology and economies of scale in fund administration. The institution wants to align its asset servicing offering more closely with its own core competencies.

At the same time, UBS is planning changes to the operating model of its Luxembourg management company. In future, it is to focus primarily on servicing in-house funds. Universal Investment has been selected as the preferred external fund management company. According to UBS, the agreement is intended to create a long-term solution for the so-called white-label clients in Luxembourg.

The collaboration between UBS and Northern Trust in fund administration dates back to 2017. At that time, UBS sold its Swiss and Luxembourg fund administration business for traditional investments to Northern Trust and concluded a long-term service agreement with the institution.