The agreement continues a 16-year relationship announced in 2000, where State Street assumed PIMCO’s back-office investment operations in California including trade processing, collateral management, pricing, and derivatives processing.
Separately, State Street has also agreed in principle with PIMCO to provide accounting, custody, fund administration and transfer agency services for an additional $140 billion in AuM.
These assets would be in addition to the $397 billion of PIMCO managed assets already serviced by State Street and are expected to include the full suite of back office services for PIMCO’s Irish Plc’s, Luxembourg trusts, Cayman/Bermuda trusts and certain custody services for private equity and hedge funds.
This anticipated mandate remains subject to completion of definitive agreements, any further approval of applicable funds’ boards or shareholders and customary regulatory approvals.
“As one of the first outsourcing deals in the industry, we are very pleased to have worked together with PIMCO to support their rapid growth for more than a decade,” said Dick Taggart, executive vice president at State Street.
“Our relationship with PIMCO has formed the cornerstone of our investment manager services outsourcing business.”
“State Street’s digital and integrated solutions for our middle- and back-offices have been and will continue to be an important part of our continued global success” said Peter Strelow, managing director at PIMCO.