GLOBAL – Schroders’ North American arm has outsourced investment operations for $3bn (€2.4bn) in assets to the Bank of New York.

The bank said it has entered into an “investment operations outsourcing arrangement with Schroder Investment Management North America” to support the asset manager’s private client and fund business.

“Total assets covered by this arrangement, managed by Schroders' Philadelphia office, exceed $3bn.” Financial terms of the deal were not disclosed.

The Bank of New York has assumed responsibility for trade support, fail management, data management, investment accounting, third party custodian reconciliation, performance measurement and end-client appraisals.

And it will develop and host a private labeled web portal for Schroders.

"We want to continue to focus on building our business and providing superior investment performance,” said Schroders’ operating chief Mark Hemenetz.

“The Bank's outsourcing solution enables us to focus on our core competency while effectively managing costs."

Meanwhile, the Bank of New York has reported first-quarter net income of $422m, up from $379m a year ago.

Assets under custody rose to $11.3trn from $9.9trn. Total assets under management were up to $173bn from $150bn.

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