State Street has been appointed by M&G Corporate Services Limited, part of M&G plc, the UK-based asset manager with >GBP367bn (>USD500bn) AuM, to provide outsourced middle office services. The agreement builds on a 10-year strategic partnership with M&G that will see State Street extend its current fund accounting and custody services for the wholesale fund ranges to provide middle office services, including portfolio services, reference data, cash reporting, transaction management, asset servicing and recordkeeping. State Street will perform these services largely relying upon BlackRock’s Aladdin platform, licensed by M&G. As part of the agreement a number of M&G employees are expected to transfer to State Street in London.
State Street was one of the founding partners of Aladdin Provider and is a leader in the adoption of Aladdin data exchange (PDX) and the Aladdin middle office model. By leveraging the Aladdin experience and knowledge from M&G, State Street will administer middle office services on Aladdin, exemplifying how State Street offers clients the benefit of choice regarding their front and middle-office systems.
Roddy Thomson, M&G’s chief operating officer, said: “This agreement is part of our five-year transformation programme to position M&G for sustainable long-term growth. It will enable us to focus on what we do best as investment managers, while developing a truly global and scalable investment operation in partnership with State Street.”