State Street has won custody mandates from four local authority pension funds in the UK.
Its existing relationship with the Rhondda Cynon Taf Borough Council Superannuation Fund has led to State Street being appointed as its sole global custodian. The fund has more than £850 million in total assets, of which £500 million was previously serviced by State Street.
The London Borough of Lambeth Superannuation Fund has also awarded State Street a new mandate to provide custody, fund accounting and commission recapture services for £115 million of its assets.
The London Borough of Barking & Dagenham Superannuation Fund has appointed State Street as the sole global custodian of its £415 million in assets following an investment manager review. Under the terms of the new mandate, State Street will also provide investment accounting and transition management in addition to full custody services.
Lastly, the London Borough of Waltham Forest Pension Fund has extended its relationship with State Street, appointing it as the sole custodian of its £355 million in assets. State Street will now provide investment accounting to the entire Fund, and will extend its provision of custody services to £240 million of new assets.
WM Performance Services, the performance measurement division of State Street, will continue to provide performance measurement services to each of the four funds. The four funds will be serviced from a combination of State Street’s service centres in London and Edinburgh.
“The UK pensions sector is a vital component of our European strategy, and specifically, we have a proven track record of meeting the financial servicing needs of UK local authorities,” says Alasdair Reid, head of State Street’s Asset Owner Group in Northern Europe. “We are delighted to continue making new inroads into the market, but it is just as important for us to see local authorities cite our impressive service history as they extend their relationships with us.”