GLOBAL - The $380bn US educational retirement savings group TIAA-CREF has awarded institutional investment manager State Street an agreement to provide management services for an additional $190bn(€152bn) in assets.
The naming of State Street as securities lending provider is in addition to $20bn that the firm already handles for TIAA-CREF, adding: "State Street has provided custody and securities lending services for a portion of TIAA-CREF's assets since 2004."
Ed Grzybowski, TIAA-CREF's chief investment officer said: "Consolidating our providers and expanding our relationship with State Street will allow TIAA-CREF to add value from our securities lending activities for our participants."
The news comes as State Street, with $11.3 trn in assets under custody and $1.6 trn in assets under management, announced its third-quarter results yesterday, saying that the results "demonstrated the continuing growth in our servicing and management fee revenue, increasing 10% and 27%, respectively".
But revenue of $1.52bn was down from the $1.65bn of the second quarter and below the $1.58bn that was expected by analysts.
State Street chairman and chief executive officer Ronald Logue also said: "In the third quarter, we saw seasonal declines in securities finance and trading services revenue, down from the very strong second quarter."
Chief financial officer Edward Resch told analysts in a conference call: "State Street's momentum slowed down in the third quarter, but we feel we kept expenses in line," according to US media.