NYC opts for State Street
23 July 2013 New York
Image: Shutterstock
State Street is in line to replace BNY Mellon as the master custodian of New York City’s five pension funds.
The city’s comptroller John Liu said in a statement that State Street’s proposal was the cheapest to emerge from an open bidding process.
State Street’s submission “offers a valuable combination of services that will increase audit transparency and modernise reconciliation capabilities for the more than 2000 accounts held by the funds”, added the statement.
The deal is subject to successful contract negotiations. BNY Mellon’s agreement with New York City is expiring.
State Street is expected to take over as master custodian in the autumn. It will provide coverage for all asset classes held by the $137 billion pension system, including equity, fixed income, private market accounts, and hedge funds.
“Implementing this proposal will make our top-flight pension fund management even stronger,” said Liu. “As the composition of our funds change and financial markets become increasingly complex, we will be able to continue to carefully safeguard and track every dollar of the city’s pension assets.”
The city’s comptroller John Liu said in a statement that State Street’s proposal was the cheapest to emerge from an open bidding process.
State Street’s submission “offers a valuable combination of services that will increase audit transparency and modernise reconciliation capabilities for the more than 2000 accounts held by the funds”, added the statement.
The deal is subject to successful contract negotiations. BNY Mellon’s agreement with New York City is expiring.
State Street is expected to take over as master custodian in the autumn. It will provide coverage for all asset classes held by the $137 billion pension system, including equity, fixed income, private market accounts, and hedge funds.
“Implementing this proposal will make our top-flight pension fund management even stronger,” said Liu. “As the composition of our funds change and financial markets become increasingly complex, we will be able to continue to carefully safeguard and track every dollar of the city’s pension assets.”
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