News of the agreement was announced Monday and the transaction is expected to close in the second half of 2017, subject to regulatory and fund board approvals and other customary closing conditions.

Once complete, Northern Trust will be administration services provider for funds with assets worth around CHF420 billion (US$413bn).

These will include UBS Asset Management's traditional funds currently serviced by UBS Fund Management (Switzerland) AG and UBS Fund Services (Luxembourg) SA.

UBS clients will continue to be supported by their current relationship management teams following the transaction and UBS Asset Management will continue to offer management company, white labelling and representative services to its clients, the firm said.

Northern Trust has operated in Luxembourg since 2004, and the transaction will make Northern Trust a top 10 asset servicing provider in terms of assets under administration.