Florida State Board of Administration, Tallahassee, plans to initiate a search March 1 for global master custodial services, possibly unbundling securities lending and other non-core custodial services.
The board, which oversees a total of $147.5 billion, invited Callan Associates, Hewitt EnnisKnupp, Mercer, R.V. Kuhns and Wilshire Associates to propose developing the criteria for the custodian search. All are members of the board’s pool of consultants, according to John Kuczwanski, FSBA communications manager. Proposals in the consultant search are due Dec. 22, and the board expects to make a decision Jan. 14.
The search for the custodian will begin after FSBA chooses the consultants and develops the criteria for the services it is seeking.
The global master custodial search would be for services for the Florida Retirement System’s $122.1 billion defined benefit fund and $5.7 billion 401(a) defined contribution plan, as well as $20 billion in non-retirement funds the FSBA also oversees.
Bank of New York Mellon is the global master custodian for all the funds; its contract for the defined contribution plan expires at the end of the year, while its contract for the defined benefit plan, for which it also serves as the primary securities lending agent, expires in 2012. Besides BNY Mellon, Deutsche Bank and ClearLend Securities provide securities lending services.
FSBA expects to select a new custodian April 20.
Separately, Katherine Harrison Whitehead was named COO and CFO for the board, effective March 1.
Ms. Whitehead will replace Gwenn Thomas, who retired Nov. 30.
Ms. Whitehead is vice president for finance of the Colonial Williamsburg Foundation, Williamsburg, Va. Tom Shrout, the foundation’s director of communications, said she won’t be replaced. The foundation has $700 million in endowment assets and $200 million in pension assets, he said.
Robert Copeland, FSBA senior operating officer-accounting and administrative services, will take up the COO/CFO duties in the interim.