State Street Corporation (NYSE: STT) announced today that it has been reappointed by PIMCO to provide investment manager services outsourcing in support of $1.55 trillion in assets under management. The agreement renews a historic 16-year investment manager services outsourcing relationship announced in 2000, whereby State Street assumed PIMCO's back-office investment operations in Newport Beach, California, including trade processing, collateral management, pricing, and derivatives processing.
Separately, State Street also has agreed in principle with PIMCO to provide accounting, custody, fund administration and transfer agency services for an additional $140 billion in assets under management. These assets would be in addition to the $397 billion of PIMCO-managed assets already similarly serviced by State Street and are expected to include the full suite of back office services for PIMCO’s Irish Plc’s and Luxembourg Trusts and Cayman/Bermuda Trusts and certain custody services for private equity and hedge funds. This anticipated mandate remains subject to completion of definitive agreements, any further approval of applicable funds’ boards or shareholders and customary regulatory approvals.
“As one of the first outsourcing deals in the industry, we are very pleased to have worked together with PIMCO to support their rapid growth for more than a decade,” said Dick Taggart, executive vice president at State Street. “Our relationship with PIMCO has formed the cornerstone of our investment manager services outsourcing business.”
“State Street’s digital and integrated solutions for our middle- and back-offices have been and will continue to be an important part of our continued global success” said Peter Strelow, managing director at PIMCO.
Andrew Erickson, executive vice president and head of State Street Investment Servicing in the Americas, commented: “As we continue our five-year technology transformation that will deliver faster processing, intra-day views and updates, and one integrated view of data across products and services, we are excited to team with PIMCO to share these solutions.
About State Street
State Street Corporation (NYSE: STT) is
one of the world's leading providers of financial services to
institutional investors, including investment servicing, investment
management and investment research and trading. With $28 trillion in
assets under custody and administration and $2 trillion* in assets under
management as of June 30, 2016, State Street operates in more than 100
geographic markets worldwide, including the US, Canada, Europe, the
Middle East and Asia. For more information, visit State Street’s website
at www.statestreet.com.
* Assets under management include approximately $40 billion as of June 30, 2016, for which State Street Global Markets, LLC, an affiliate of SSGA, serves as the distribution agent.
Forward-Looking Statements
This news release contains
forward-looking statements as defined by United States securities laws,
including statements relating to our plans to complete an expansion of
our investment servicing relationship with PIMCO with a mandate for $140
billion in assets, which mandate is subject to completion of definitive
agreements, approval of applicable and funds’ boards or shareholders and
customary regulatory approvals. Forward-looking statements are often,
but not always, identified by such forward-looking terminology as
“anticipate,” “expect,” “plan,” “will,” “intend,” “goal,” “forecast,”
“outlook,” “believe,” “estimate,” “seek,” “may,” “trend,” “target,”
“strategy” and “objective,” or similar statements or variations of such
terms. These statements are not guarantees of future performance, are
inherently uncertain, are based on current assumptions that are
difficult to predict and involve a number of risks and uncertainties.
Therefore, actual outcomes and results may differ materially from what
is expressed in those statements, and those statements should not be
relied upon as representing our expectations or beliefs as of any date
subsequent to the date of this news release. Important factors that
could cause actual results to differ materially from those indicated by
any forward-looking statements are set forth in our 2015 Annual Report
on Form 10-K and our subsequent SEC filings. We encourage investors to
read these filings, particularly the sections on risk factors, for
additional information with respect to any forward-looking statements
and prior to making any investment decision. The forward-looking
statements contained in this news release speak only as of the date
hereof, and we do not undertake efforts to revise those forward-looking
statements to reflect events after that date.
CORP-2322
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