State Street Corporation has been appointed by M&G Corporate Services Limited, part of M&G plc, (M&G) 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 record-keeping. State Street will perform these services largely relying upon BlackRock’s Aladdin® platform licensed by M&G.
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. The service model incorporates the use of Aladdin Accounting and Aladdin PDX messaging.
“We are delighted to expand our strong relationship with M&G,” says Joerg Ambrosius, chief executive officer, Europe, Middle East and Africa at State Street. “We are committed to providing solutions for a wide range of our clients’ needs including our State Street AlphaSM clients who can utilise both Aladdin and State Street product and services. This marks another important step in helping asset managers to stay focused on their investment process, lower their costs, improve efficiency and deliver desired investment outcomes.”
“This agreement is part of our five-year transformation programme to position M&G for sustainable long-term growth,” says Roddy Thomson, M&G’s chief operating officer. “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.”
As part of the agreement, it is proposed that a number of M&G employees will transfer to State Street in London under a TUPE arrangement by 1 July 2021.
