General Motors Investment Management Co. has reduced its stable of custodians, outsourcing much of its back office and administration in the process.
State Street Bank, already GMIMCo's master record keeper for the $73 billion in defined benefit plan assets and master trustee for its $21 billion defined contribution plan, will add the role of custodian for $46 billion of GMIMCo's U.S. public securities assets. As a master record keeper, State Street collects and summarizes investment data for all of GMIMCo's defined benefit pension assets, even those for which it is not the custodian.
Mellon previously was custodian of those assets. It will continue to be custodian for $3 billion of insurance assets managed by GMIMCo, he said.
Chase Manhattan, already GMIMCo's custodian for $20 billion in non-U.S. securities, will take over as custodian to the company's $7 billion in private market investments, including real estate, said Desmond Mac Intyre, vice president of financial planning.
Chase replaces Bankers Trust and Mellon. Both defined benefit custodians will provide back-office services, not considered value-added skills of GMIMCo, Mr. Mac Intyre said.
Cherokee Eastern Band, Cherokee, N.C., hired its first international equity and small-cap equity managers for its $45 million endowment and $25 million for its minors' fund. High Rock Capital will manage $10 million in small-cap equity for both funds. For core international equity, Bankers Trust will manage $10 million for the endowment and Glenmede Trust will manage $6 million for the minors' fund. The changes follow an asset allocation study conducted by Kalson & Associates. The new allocation is 60% equities, 40% bonds; the old one was a 50/50 split.