Dutch financial group ABN AMRO said its asset management operations had concluded a European outsourcing deal with State Street Corp.

The assets under management within the scope of this agreement total 75 billion euros ($88.5 billion).

U.S.-based financial services group State Street will provide fund administration and investment operation services for ABN AMRO Asset Management in the Netherlands, Britain, Luxembourg and Sweden.

The deal, under which State Street will take on some 110 ABN AMRO staff, will allow the Dutch group to focus on its core activities of asset management and investment advice.

Bert Schouws, the chief operating officer and chief financial officer of ABN AMRO Asset Management said the deal would allow the bank to reduce costs and operational risks.

Spokesman Jochem van der Laar declined to give financial details but industry observers said the savings were likely to be in the order of several million euros.

The services will be phased in over a two and a half year period starting this summer.

Custody services are not part of the arrangement and will remain in the ABN AMRO Mellon (MEL) joint-venture.

ABN AMRO was managing assets of 166 billion euros as of March 2004, from over 20 locations worldwide.