HSBC is acquiring the 50% stake it doesn't already own in Asia Fund Services (AFS), a shareholder services joint venture it established with United Overseas Bank (UOB) of Singapore, for US$2.6 million.
AFS was created in February 2004 and the two banks shared the cost of developing the share registry and reporting system designed specifically to service institutional fund clients in Singapore.
Upon completion of the buy out, AFS will be 100% held by HSBC Institutional Trust Services and will be renamed HSBC Securities Services (Transfer Agency).
HSBC says it will roll out AFS' share registry software globally to all its fund administration clients.
Nick Bryan, head, HSBC Securities Services, Asia Pacific, comments: "The improved functionality, flexibility and efficiency of the system allow HSBC to unify its shareholder services globally. Full ownership of Asia Fund Services will enable us to accelerate the transfer of clients to the enhanced platform in a seamless and efficient manner."
UOB says it will continue to use AFS services after it is transferred to full HSBC ownership.
The transaction is subject to regulatory approvals and is expected to be completed by 30 November 2005.