State Street Corporation, the world's leading provider of financial services to institutional investors, announced today that it has been appointed by the Municipal Employees' Retirement System of Michigan to provide a range of investment services for $6 billion in public fund assets.
State Street will provide global custody, daily accounting and performance measurement, securities lending, cash management, and investment compliance monitoring.
"State Street's expertise in daily valuation as well as its ability to provide a total servicing solution was key to our decision," said Jeb Burns, chief investment officer of the Municipal Employees' Retirement System of Michigan. "After a competitive review, State Street proved best-suited to meet our growing needs."
"We are extremely pleased to secure this new mandate from the Municipal Employees' Retirement System of Michigan," said Vincent DeBaggis, senior vice president of State Street's public fund servicing team. "With the growing complexity involved in servicing public funds, more of them are recognizing the importance of partnering with service providers who can keep pace with their complex requirements."
State Street also announced that it has been re-appointed by five existing public fund customers to provide services for more than $180 billion in assets.
Customers renewing their business with State Street include:
- The City of Philadelphia Board of Pensions and Retirement — State Street will continue to service $5 billion in assets in a relationship that began more than a decade ago.
- State Retirement and Pension System of Maryland — State Street's focus on Maryland's changing needs was cited by officials in their decision to expand its mandate to include additional services for the system's $40 billion in assets.
- University of California Regents — The educational authority cited State Street's expertise, client service and commitment to technology development in its decision to extend the relationship. State Street provides a range of global custody services to the $73 billion fund.
- Montana Board of Investments — The Montana Board re-appointed State Street to provide an expanded range of investment services for its $13 billion in assets. State Street has held the account since 1993.
- Minnesota State Board of Investment — State Street has extended its more than two decade-long relationship to include investment compliance and daily performance reporting. State Street now provides a range of services for more than $55 billion in assets for Minnesota.
"Being retained by these long-standing customers as their investment servicing partner is further evidence of our recognized leadership in serving the needs of public funds," added DeBaggis.
State Street now services approximately 40 percent of the public fund business in the United States, with customers in 34 states, the District of Columbia, Puerto Rico, and the US Virgin Islands.