CalPERS has launched a search for a new master custodian for its $300 billion pension fund when its contract with State Street runs out in the summer of next year.
The pension fund, which is the largest in the U.S., issued a Request for Proposal (RFP) to cover custody, accounting, performance and reporting services for its funds and 457 deferred compensation plan.
Custodians, including State Street, are invited to submit their proposals for the huge mandate, in which applicants must indicate by September 8th if they plan to submit a bid, with final proposals due on October 7th.
CalPERS reappointed State Street as its global custodian in 2011, despite allegations the Boston-based bank faced at that time from the State of California that it was overcharging both CalPERS and CalSTRS.
The contract paid State Street around $5.7 million in yearly fees.