he manager of the Babson
and J&B Funds
, Jones & Babson
, is cutting some 35 employees, as it is outsourcing its back office fund administration functions to Wells Fargo
(a joint-venture of DST and State Street), and BISYS
, according to a spokesperson for the Royal Bank of Canada
The decision to outsource followed the previously announced acquisition of Businessman's Assurance Company of America
, the parent of Jones & Babson, by RBC, who oversaw the move. Some of the 35 staffers may land positions with one of the three new outsourcing partners, added the spokesperson.
The outsourcing deals, however, do not cover the underwriting and distribution of the funds, as those services are expected to be taken over by RBC's Dain Rauscher.
Meanwhile, the affected functions include administration, fund accounting, custodial and transfer agency services of the Jones & Babson funds and Kornitzer Capital Management
's Buffalo Funds
For its part, Buffalo Funds has been transitioning its fund accounting and transfer agency functions to U.S. Bancorp Fund Services for its stable of funds, confirmed Kent Gasaway
, one of the portfolio managers for the fund family.
U.S. Bank was also tapped as Buffalo's custodian, while the bank's affiliate unit, Quasar Distributors
, is to provide fund underwriting and distribution services, according to Gasaway.
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