J.P. Morgan has been selected by the State of New Mexico to provide custody and securities services for $40 billion in assets. The previous custodian was Northern Trust.
According to a source at the New Mexico Treasury office, the State had heard “a lot of complaints against Northern Trust.”
Within to meeting minutes of the State Treasurer’s Investment Committee in January 2008, then State Investment Officer Gary Bland said Northern Trust is not doing an adequate job. Bland resigned in October 2009 amid a federal investigation over the designation of third-party marketing or placement agents.
Problems were also mooted in a 2007 Committee meeting, particularly with alternative investments. Northern Trust was appointed in 2003.
The State of New Mexico has four separate agencies: the State Investment Council, the Public Employees Retirement Association, the Educational Retirement Board, and the State Treasurer’s Office.
J.P. Morgan will provide custody and securities services including: global custody, fund accounting, asset and alternative investment servicing, compliance reporting, foreign exchange, cash management and performance analytics.
“We chose J.P. Morgan because they offer the complete breadth of services we require. The firm scored well during the RFP committee evaluation of J.P. Morgan’s proposal, based on the criteria established for the state’s custodial service requirements. We are impressed with the strength of the firm, their commitment to the public pension market — and we believe they have the right combination of customer service and technology to provide the best service for our funds,” said James B. Lewis, New Mexico State Treasurer.