ING Investment Management (Americas) has outsourced the back office operations of its Managed Accounts business to the Bank of New York.
Under the deal, the Bank of New York will assume responsibility for the technology infrastructure and operations of the business, including account opening and maintenance, trade support and reconciliation.
In addition, ING says some of its operations managers and staff will transfer to the bank, as part of the agreemeent.
Bob Crispin, chairman and CEO, ING Investment Management Americas, says the firm "will now be able to process a high volume of transactions more efficiently from both a quality and scale advantage."
He adds that the Bank of New York provides several of ING's businesses with transaction processing support and technology solutions. In September last year, ING outsourced its international cash equities clearance and settlements operations in London, New York, Hong Kong and Singapore to The Bank of New York.
Thomas Perna, senior executive vice president, Bank of New York, says the managed account industry is growing rapidly, but the lack of standardised protocols and processes make it difficult for investment managers to compete effectively.
"ING Investment Management will benefit from the bank's top-tier processing, scalable technology and managed account expertise," he says.