has learned that the Kansas City, Missouri-based DST Systems
is eliminating approximately 150 jobs in its financial services business.
"Approximately 150 jobs will be eliminated in the financial services organization in the next three months," Laura Parsons
, a spokesperson for DST Systems tells MFWire
"The reductions are functions of DST ongoing efforts to create healthy and sustainable businesses that are a reflection of current and anticipated market conditions," Parsons adds.
Parsons declined to elaborate on where the cuts will fall.
In 2011 DST purchased ALPS Fund Services
. That unit has been a bright spot, contributing in part to the 266.6 million in revenue for the Financial Services Segment during DST's most recently reported quarter.
In July, DST reported that operating margins in its financial services segment had slipped to 20.6 percent from 21.5 percent in 2013. In the same report, DST executives reported that "declines in mutual fund registered shareowner account processing due to lower registered accounts" had been a drag on the segment's operating income. The drop in account processing was due primarily to subaccounting conversions.
DST Bokerage Solutions
handled 98.5 million mutual fund shareholder accounts as of June 30.
Industry sources have told MFWire that DST Retirement will also see some of the cuts in jobs.
The changes will affect the staff in offices including: Kansas City, Missouri; Jefferson City, Missouri; South Windsor, Connecticut; and Hyderabad, India.
Earlier this month DST separately announced a new "predictive wholesaling" service that executives say will enable fund firms to target their "most valuable" advisor relationships.
The service uses data from DST's transfer agency and subaccounting systems as well as with customer and third-party industry data sources to identify opportunities for fund firms at the firm, office and advisor levels.
It also recommends products to promote to an advisor and recommends advisors that will most likely respond to a promotion as well as where an advisor ranks within the industry.
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