White Outsourcing, an operational services provider for boutique fund managers, has won three clients for its new capability to run the middle- and back-offices of managers investing offshore.
Previously, White concentrated on Australian equity and fixed income managers, but can now coordinate the investment operations of boutiques investing offshore, such as the Asian holdings run by existing client MIR Investment Management and a global trust run by Magellan Financial Group.
The outsourcer also won business from a family office and a global fund manager on the back of its new capabilities.
It began servicing the Asian investment operations of MIR’s middle office on April 1, replacing a hybrid system built from the manager’s proprietary software and BNP Paribas Securities Services.
“On the systems side, we haven’t had to do an awful lot. It’s really automation of flows between ourselves and MIR,” Andrew Harrison, director of investment administration at White, said.
The outsourcer also secured a contract with a US manager which runs a mandate from a superannuation fund, and uses Citi as a custodian and Perpetual as a trustee.
To offer the new service, it established automation processes with managers and service providers in markets where clients were sourcing mandates, namely Asia and Europe, Harrison said.
A “custodian-agnostic” back-office outsourcer, White deals with 12 custodians, but has clubbed 20 boutiques into a $2 billion account with JP Morgan Worldwide Securities Services, which the custodian views “as one client,” Harrison said.
The account is big enough for JP Morgan to waive the hefty minimum relationship fee custodians usually charge to managers, which can range between $200,000–$300,000.
White, which has 50 clients $15 billion under administration, does not charge a sign-on fee.
“We find it hard to charge clients when we’re not doing any work. So our model is scaleable, and when a client grows, they understand that risks increase and so should costs.”