Deutsche Börse Group’s post-trade services provider, Clearstream, will buy 51.2% of UBS Fondcenter with a view to creating what it describes as “a leading global B2B fund distribution platform”.
The combined platform, to be called Fondcenter, will have over $230bn (€207.5bn) in assets under administration.
It will connect around 340 distribution partners with more than 450 fund providers, with over 75,000 investment funds and share classes available, globally.
Fondcenter will have a presence in Europe, Switzerland and Asia.
Fondcenter employees will transfer to Clearstream as part of the sale, with the management team taking senior positions within the combined business.
UBS will retain 48.8% of the venture and will enter into an agreement under which is may sell its remaining shareholding to Clearstream at a later date.
As part of the deal, UBS and Clearstream will also enter into long-term commercial cooperation arrangements for the provision of services to UBS’s Global Wealth Management and Asset Management business divisions.
This will extend to the corporate and institutional clients unit of Personal & Corporate Banking.
UBS Asset Management chief executive Suni Harford said the sale “enable us to further focus the asset management business on the execution of our strategic priorities to drive further profitable growth”.
The transaction is subject to customary closing conditions and is expected to complete in the second half of 2020.
At that time, UBS expects to recognise post-tax gain of approximately $600m and a common equity tier (CET1) capital increase of around $400m.