Iowa Municipal Fire & Police Retirement System, West Des Moines, began contract negotiations with State Street Bank & Trust to be global custodian for the $1.6 billion system, said Dennis L. Jacobs, executive director.
Northern Trust had been chosen in a search conducted last year, but the system failed to reach agreement with the firm, Mr. Jacobs said. He declined to disclose the sticking points with Northern Trust because the negotiations with State Street are still under way.
The contract of BNY Mellon, the system’s global custodian, expires June 30. Trustees started the search because they wanted to take a fresh look at the custodial marketplace since it has been many years since they examined it, Mr. Jacobs said.
BNY Mellon and J.P. Morgan were also finalists, Mr. Jacobs said. Both would be considered if contract terms cannot be reached with State Street.
All four global custodian candidates were rated highly in the system’s evaluation and scoring, Mr. Jacobs said.
Mr. Jacobs said the system didn’t have a time frame for concluding the State Street negotiations.