The State Street Corporation (NYSE: STT) announced Monday it has agreed to a deal with Morgan Stanley (NYSE: MS) to provide them investment management operations services for about $300 billion in assets under management.
As part of the terms, State Street will assume approximately 100 employees worldwide from Morgan Stanley’s Investment Management unit. According to the company, the majority of the workers to be inherited are based in the U.S., but there are some located in foreign countries.
Overall, the deal calls for State Street to work with the Morgan Stanley Investment Management unit and provide global outsourcing services, such as portfolio administration and reporting and reconciliation services for the majority of assets held under management by the investment management group.
“State Street is a recognized global leader in investment operations outsourcing and we are confident that our organization and our clients will benefit from its leading technology systems, depth of resources and commitment to excellence in customer service.” said Joanne Pace, chief operating officer of Morgan Stanley Investment Management, in a press release.
The deal is just another in a longstanding relationship between the two firms that dates back roughly 40 years.
“As one of the first providers to offer investment operations outsourcing services, State Street has a decade of experience in servicing some of the most complex and global books of business and we look forward to building on this success,” said Jay Hooley, president and chief operating officer of State Street Corporation.
State Street provides services for more than $6 trillion in middle office assets to clients globally and its investment manager operations outsourcing solution covers all aspects of the trading cycle.
