UBS to Shift Fund Administration for Swiss and Luxembourg Units to Northern Trust

UBS has reached an agreement to extend its fund administration relationship with Northern Trust and to transfer its former Credit Suisse fund administration businesses in Switzerland and Luxembourg. The proposed arrangement remains subject to regulatory approval and would expand Northern Trust's existing administration mandate with UBS's Swiss and Luxembourg Management Companies.

Scope of the transfer

The scope will include investment funds currently administered by UBS. Northern Trust will take over the traditional and alternative fund administration businesses that UBS inherited from Credit Suisse in the two countries.

The transfer will be handled in a phased manner over two years, as the services move to Northern Trust. Completion is expected in the second quarter of 2027.

UBS Asset Management transferred its Swiss and Luxembourg traditional fund administration business to Northern Trust in 2017 under a long-term servicing agreement, and Credit Suisse's fund administration business became part of UBS following the acquisition.

A simplified operating model in Luxembourg

UBS will simplify the operating model of its Luxembourg Management Company, which will focus mainly on its in-house funds. Universal Investment has been chosen as the preferred Third-Party Fund Management Company for UBS's white labelling clients in Luxembourg.

Andreas Toscan, UBS Institutional Clients and Global Asset Servicing head, said: "With this step, we are further focusing our asset servicing offering on our core strengths to meet clients' evolving needs, while enabling them to benefit from Northern Trust's leading fund administration capabilities and commitment to continuously invest in the long-term development of their platform."

What the arrangement builds on

The move extends a relationship that dates back to 2017, when UBS Asset Management transferred its Swiss and Luxembourg traditional fund administration business to Northern Trust under a long-term servicing agreement. Credit Suisse's fund administration business became part of UBS following the acquisition.

For Northern Trust, the arrangement both broadens an existing mandate and absorbs operations that UBS had inherited through that acquisition. For UBS, the stated aim is to concentrate its asset servicing offering on core strengths while its Luxembourg Management Company narrows its focus to in-house funds and white labelling clients are served by Universal Investment.

Because the proposed arrangement remains subject to regulatory approval and the migration is set to run over two years toward a completion expected in the second quarter of 2027, the operational timeline and final scope will depend on that approval and on the phased transition of services.