State Street Corporation has been appointed to provide investment operations services to the fund complexes of Columbia Management Group (Columbia Management), Bank of America’s asset management arm. The move follows Bank of America’s acquisition last year of FleetBoston Financial and expands State Street’s existing relationship with Columbia Management as service provider for their funds.
State Street will provide custody, fund accounting, and financial reporting for $224 billion of Columbia Management’s assets including the Columbia, Nations, Acorn and Galaxy Funds and other managed assets. Boston Financial (BFDS), a joint venture of State Street and DST Systems, Inc. and a provider of automated shareholder recordkeeping for mutual fund management companies, has been selected to provide transfer agency services to the funds.
This new mandate builds on State Street’s existing relationship with Columbia Management during which it has supported more than 50 fund mergers, 190 accounting conversions and 127 custody conversions, over the past four years. As part of the mandate, approximately 100 positions will be created comprising approximately 40 in fund accounting and custody at State Street and approximately 60 in transfer agency at BFDS.
“State Street and BFDS were selected on the basis of several critical factors,” said Christopher L. Wilson, Columbia Management’s head of mutual funds. “Columbia Management sought a fully integrated transfer agency, custodial services and fund accounting platform. State Street and BFDS are uniquely positioned to provide what we need,” he explained. “Reducing the number of vendors allows us to capitalize on efficiencies, build consistent internal controls and manage risk more effectively. Ultimately, this will improve the quality of service that we provide to our shareholders.”