GLOBAL - South Africa-based Investec Asset Management has outsourced the administration of its 34 billion dollars (27.7 billion euros) in institutional assets to State Street Corp.

State Street will provide investment operations, global custody and fund accounting services for Investec’s worldwide assets under management.

The announcement comes seven months after Investec announced that it had entered “exclusive negotiations” with State Street for the mandate.

As part of the deal, about 66 Investec staff based in Cape Town and London have become employees of State Street, the bank said.

Investec chief executive Hendrik du Toit said the agreement allows it to focus on its ‘core business’.

“By using State Street’s experience and technology platform, we will be able to direct more resources to developing innovative solutions to help our clients succeed,” he added.

“The mandate with Investec will augment State Street’s existing fund servicing capabilities in South Africa, which are fully scaleable to support additional fund managers throughout the region,” State Street said.

Jeff Conway, senior vice president of State Street, said: “As global investment managers seek partners to help them operate more efficiently, we believe that State Street has the required experience in handling complex transitions of this nature.”