Rio Tinto, London, hired State Street Corp. to provide global custody services for its six major pension plans in the U.S., Canada and the U.K., with a combined $8 billion in assets, according to Michael Wrobel, group adviser of pension investments at Rio Tinto.
State Street had been global custodian to two of the six plans. HSBC, Northern Trust and Bank of New York Mellon were custodians for the other four plans.
The first driver was cost, said Mr. Wrobel, who did not have information on the size of each plan available by press time. We were looking for economies of scale from a global perspective, and we wanted to appoint a best-in-breed provider.
State Street will also provide securities lending, investment analytics and fund accounting.