Connecticut State Treasurer Shawn Wooden has selected State Street Bank & Trust (State Street) to provide custody services and accounting administration for the Connecticut Retirement Plan and Trust Funds (CRPTF) and the internally managed funds.
As part of the US$61 billion mandate, State Street will also serve as an investor account administrator for the State of Connecticut’s Short-Term Investment Fund (STIF).
The STIF is a $12.5 billion fund that is internally managed at the Office of the Treasurer. The STIF serves as an investment vehicle for the operating cash of the state, state agencies and authorities, municipalities, and other political subdivisions of the state.
The STIF is part of over $18 billion in aggregate funds which are internally managed by the Office of the Treasurer and counts nearly all municipalities and other political subdivisions as investors.
In December 2020, the Office of the Treasurer issued a request for proposal to find a qualified firm to serve as the master custodian for the CRPTF and the funds internally managed, including the STIF.
The key considerations leading to the selection of a master custodian candidate were organisational robustness experience, financial health, and management structure, says Connecticut State Treasury.
State Street’s product offer includes integrated platforms with risk management, advanced analytics, corporate governance, and ESG monitoring applications.
The transfer agency component of this contract will provide these investors with additional flexibility, allowing them greater efficiencies in managing the funds entrusted to them by their constituents.
Commenting on the mandate, Wooden says: “As a leading provider of financial services to institutional investors with a strong track record of delivering services to sophisticated asset owners, Connecticut is thrilled to announce our decision of bringing on State Street as the master custodian for our pension funds.”
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