M&G outsources middle-office to State Street

OutsourcingState Street has won a mandate to supply middle office functions to M&G Corporate Services.

The deal will see a number of M&G employees transferred to State Street’s London office as of July 1 as the asset manager looks to reduce its operational overheads.

Many of the services will be delivered via BlackRock’s Aladdin system, which is licensed by M&G, and then administered by State Street.  

The US asset servicer has been providing M&G with fund accounting and custody services for the best part of a decade.

The new agreement will see the outsourcing of further middle office functions including portfolio services, reference data, cash reporting, transaction management and recordkeeping.

These functions will largely be performed via various Aladdin systems such as its data exchange platform and middle office model, both of which have been adopted by State Street as a founding partner of the Aladdin Provider scheme.

According to M&G chief operating officer Roddy Thomson, the deal with State Street is part of a five year transformation programme designed to position the asset manager for “long-term sustainable growth”.

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