The Rhode Island State Investment Commission is replacing State Street, its current custodian, with BNY Mellon as the custody provider for its $8 billion in assets.
Switching to BNY Mellon will save the state $300,000 annually, the commission says. The decision is part of the treasurers ongoing priorities to assess the value of financial service contracts, says Joy Fox, communications director for the General Treasurer.
There was no dispute between State Street and the commission, Fox says, and the move happened after a review that looked at several metrics, such as quality of service, customer service and cost. The Treasury issued a request for proposals for pension assets and cash custody in March.
BNY Mellon will provide settlement of all purchases and sales, collection of interest payments, processing of principal pay downs, settlement of debenture payoffs, receipt and disbursement of repurchase collateral, performance reporting, portfolio analytics, proxy voting services and class action notification and processing.
(OS)