State Street announced today that the North Carolina Department of the State Treasurer, Minnesota State Board of Investment and the Employees’ Retirement System of the State of Hawaii had appointed the bank to provide a variety of investment services. Together, the new mandates represent approximately $114 billion in assets, and take State Street’s share of the US public funds sector to 37 per cent.
State Street will provide each client with domestic and global custody, securities lending, accounting, cash management and master recordkeeping as well as transition management, daily valuation and performance measurement, commission recapture and forex trading services.
State Street has been retained by The North Carolina Department of the State Treasurer to service approximately $65 billion in custody and master recordkeeping assets and provide securities lending, transition management, daily valuation and performance measurement, cash management and FX trading services. “Once we decided to revitalize treasury operations by making them more streamlined and efficient, we focused our attention on finding service providers that were industry leaders,” says Richard Moore, North Carolina Treasurer. “We decided that State Street was the right choice based on their reputation as a technology leader as well as their consultative approach to client service.”
Minnesota State Board of Investment has been a State Street client for 19 years. The relationship will now expand to a total of $41 billion in assets. In winning the business, which was competitively re-bid through an RFP process last year, State Street will now provide domestic and global custody, accounting and securities lending, plan unitization and accounting, cash management services, performance measurement and analysis, commission recapture services and FX trading to the state’s investment portfolio. “Throughout the years, State Street has consistently proven to be the best provider of custody and related services in the marketplace, says Howard Bicker, executive director of the Minnesota State Board of Investment. “What we value most in working with State Street is their orientation toward high-caliber client service and responsiveness to our needs.”
The Employees’ Retirement System of the State of Hawaii is another longstanding client which has now appointed State Street to provide custody, securities lending, performance and analytics, and cash management services for the state’s investment portfolio, valued at over $8 billion. “We are delighted to be working with the State of Hawaii once again and helping them to take advantage of new technology, which includes the active integration of our client facing technologies into their systems environment,” says Lee Jones, senior vice president of State Street.
“We look forward to working as a partner with each of these public funds clients as they seek to maximize the results of their investment activities,” adds Jones. “All three mandates are prime examples of our commitment to providing highly integrated service solutions to our clients – and building long-term relationships that can be adapted to their changing needs and market demands.”
State Street says it now services nearly two fifths of the public fund business in the United States, with clients in 32 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. But the bank says it has expanded its market share significantly in the last two years, adding or retaining mandates with public funds including CalPERS, CalSTRS, New York State Teachers, District of Columbia Retirement Board, and the states of Maryland, Vermont, and Washington. “Our team of specialists understands the needs of public organizations and have established an outstanding track record in providing these clients with cutting-edge and personalized service solutions,” Jones adds.