Northern Trust has agreed to acquire UBS Asset Management's fund administration servicing units in Luxembourg and Switzerland for an undisclosed sum.

Northern Trust said that the deal will support its expansion plans in Luxembourg, where it has been present since 2004, as well as help it gain local fund administration capabilities in Switzerland.

Following the completion of the deal, which is expected in the second half of 2017, Northern Trust will become the fund administration services provider for funds with about CHF420bn ($413bn) in assets that are currently being serviced by UBS.

Clients of UBS will continue to receive the support of their existing relationship management teams, while UBS Asset Management will continue to offer management company, white labelling and representative services to its clients.

Northern Trust chairman and CEO Frederick Waddell said: “This agreement represents a significant opportunity for Northern Trust and our clients as we broaden our scale, products and market reach across Europe.

“We look forward to expanding our service offering in Switzerland and further deepening our presence in Luxembourg.”

Commenting on the deal, UBS Asset Management president Ulrich Koerner said: “This move will enable us to further focus our efforts on helping clients address their global investment challenges, while ensuring their fund administration needs continue to be well served.”