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Wells Fargo (WFC) to Sell its Fund Administration Unit
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Wells Fargo & Company (WFC - Free Report) has agreed to sell Wells Fargo Global Fund Services (GFS), its fund administration business, to SS&C Technologies Holdings, Inc. (SSNC - Free Report) . SS&C is a Connecticut-based financial services software and software-enabled service provider across the globe.
The fund administration unit is part of Wells Fargo’s investment banking and capital market unit, Wells Fargo Securities.
The transaction awaits regulatory approvals, but is expected to close in the fourth quarter of 2016. Terms of the deal remain undisclosed.
Pursuant to the deal, SS&C will take over Global Fund Services’ operations and workforce of about 250 people across New York, Minneapolis, Singapore, Hong Kong and the United Kingdom. Wells Fargo will be teaming up with SS&C for “continuity of services” to Global Fund Services’ clients and also provide access to its pack of financial products.
Further, Wells Fargo Securities will continue to provide financial solutions to Wells Fargo’s alternative asset manager clients in areas of Prime Services, Futures and OTC Clearing and Futures Execution.
Per Dan Thomas, head of Institutional Investor Services at Wells Fargo Securities, “We believe GFS clients will benefit from SS&C’s industry-leading position, proprietary technology and depth of expertise in fund administration.”
Wells Fargo has been making such moves in response to increasing regulatory restrictions on banks. In Mar 2016, the bank sold its crop insurance business to Zurich American Insurance Company (ZAIC), a subsidiary of Zurich Insurance Group, for approximately $4 billion in assets.
In Aug 2016, Wells Fargo closed the acquisition of the Australian and New Zealand segments of GE Capital’s Commercial Distribution Finance, with the exception of the Europe, the Middle East and Africa segments.
Recently, Wells Fargo’s stock has been sliding due to several concerns impacting its status as the market's largest bank. The stock declined around 1% in the last trading session to close at $46.52.
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Wells Fargo (WFC) to Sell its Fund Administration Unit
Wells Fargo & Company (WFC - Free Report) has agreed to sell Wells Fargo Global Fund Services (GFS), its fund administration business, to SS&C Technologies Holdings, Inc. (SSNC - Free Report) . SS&C is a Connecticut-based financial services software and software-enabled service provider across the globe.
The fund administration unit is part of Wells Fargo’s investment banking and capital market unit, Wells Fargo Securities.
The transaction awaits regulatory approvals, but is expected to close in the fourth quarter of 2016. Terms of the deal remain undisclosed.
Pursuant to the deal, SS&C will take over Global Fund Services’ operations and workforce of about 250 people across New York, Minneapolis, Singapore, Hong Kong and the United Kingdom. Wells Fargo will be teaming up with SS&C for “continuity of services” to Global Fund Services’ clients and also provide access to its pack of financial products.
Further, Wells Fargo Securities will continue to provide financial solutions to Wells Fargo’s alternative asset manager clients in areas of Prime Services, Futures and OTC Clearing and Futures Execution.
Per Dan Thomas, head of Institutional Investor Services at Wells Fargo Securities, “We believe GFS clients will benefit from SS&C’s industry-leading position, proprietary technology and depth of expertise in fund administration.”
Wells Fargo has been making such moves in response to increasing regulatory restrictions on banks. In Mar 2016, the bank sold its crop insurance business to Zurich American Insurance Company (ZAIC), a subsidiary of Zurich Insurance Group, for approximately $4 billion in assets.
In Aug 2016, Wells Fargo closed the acquisition of the Australian and New Zealand segments of GE Capital’s Commercial Distribution Finance, with the exception of the Europe, the Middle East and Africa segments.
Recently, Wells Fargo’s stock has been sliding due to several concerns impacting its status as the market's largest bank. The stock declined around 1% in the last trading session to close at $46.52.
Currently, Wells Fargo carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the same space include Comerica Incorporated (CMA - Free Report) and Republic Bancorp Inc. (RBCAA - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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