1st Jul 2005 10:32
Schroders PLC01 July 2005 Schroders plc 1 July 2005 Announcement of Changes in UK Custody and Portfolio Accounting OutsourcingProject Schroders plc today announces that it has agreed with JPMorgan Chase & Co.(JPMorgan) to discontinue their project to outsource Schroders' UK custody andportfolio accounting services on to a new JPMorgan platform. Together, Schrodersand JPMorgan have concluded that their operating models are no longersufficiently aligned to justify the continuation of the project. JPMorgan has provided UK custody and portfolio accounting services to Schroderson Schroders' platforms since 2000. The operation of these platforms will now betransferred back to Schroders. It is anticipated that staff currently operatingthe platforms will transfer to Schroders. This is expected to be completed bythe end of the third quarter of 2005. Schroders' clients will not be affected bythese changes. The discontinuation of this project does not affect any other aspects of thelong standing relationship Schroders has with JPMorgan. JPMorgan will continuein its existing relationship to support Schroders for other custody, accountingand ancillary services. As a result of these arrangements Schroders' asset management costs are expectedto increase from the fourth quarter of 2005 by approximately £2.5 million perquarter. Against this, Schroders is receiving a one-off payment of approximately£20 million from JPMorgan which will be reflected in the Income Statement in thefirst half of 2005. Management expects this increase in costs to be absorbedover the next two years within the Group's continuing programme for controllingoperational and non-compensation costs as the business grows. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Schroders