Investment Operations

Clearstream Creates New Fund Center Following Fondcenter AG Acquisition

Post Trade Transparency
  • Clearstream closes transaction acquiring majority stake in Fondcenter AG from UBS
  • Newly combined fund distribution support business Clearstream Fund Centre has over USD 290 billion assets under administration
  • UBS enters into long-term commercial cooperation agreements for the provision of services by Clearstream Fund Centre

Deutsche Börse’s post-trade services provider Clearstream completed the acquisition of a majority stake in UBS’s fund distribution platform Fondcenter AG from UBS on 30 September.

In January 2020, Clearstream and UBS announced a joint agreement under which Clearstream has now acquired a 51.2 per cent stake in the B2B fund distribution support platform Fondcenter for CHF 389 million. UBS holds a minority stake of 48.8 per cent, remaining a strategic partner, and has entered into long-term cooperation agreements for the provision of services by Clearstream including to continue using the Fund Centre platform on a long-term basis. 

Analysts say fund distributors have increasingly outsourced resource-intensive distribution support services, such as fee management and research as well as the management of fund data and documentation. Asset managers benefit from the global client network of Clearstream which brings additional reach and efficiency in the distribution of investment funds.

“Fondcenter’s fund platform business perfectly complements Clearstream’s existing fund distribution support services,” Bernard Tancré, CEO of Fondcenter and Head of Investment Fund Services Product at Clearstream. “With the newly combined Clearstream Fund Centre, fund distributors will now have access to contracts covering over 70,000 funds worldwide,” he said.

Clearstream combines the Fondcenter business with its existing Fund Desk, forming Clearstream Fund Centre, which it says is a center of excellence for global fund distribution support with over USD 290 billion assets under administration and anticipated double-digit revenue growth over the next years.