Pacific Investment Management has renewed its contract with State Street to manage its investment operations, on an outsourced basis.
Assets covered now total $1.1 trillion, after 11 years of management under the arrangement.
The original agreement in 2000 was one of the first outsourcing pacts in the investment management industry.
At the time, State Street assumed PIMCO’s investment operations in Newport Beach, Calif. The functions included trade processing, custody, accounting, collateral management, pricing, derivatives processing and IT development. In 2011, State Street has more than 700 employees worldwide servicing PIMCO’s investment operations.
“This renewal is a strong endorsement of our continued investment in technology solutions for global asset managers,” said Jeff Conway, executive vice president and global head of State Street’s investment manager services business. “
State Street estimated it has $8 trillion in middle-office assets under administration.
In February, PIMCO assigned State Street to provide fund accounting, fund administration, custody and trustee services to a set of newly launched retail funds in Canada, as well.
