Connecticut Retirement Plans & Trust Funds, Hartford, hired BNY Mellon Asset Servicing as global custodian, confirmed Denise Nappier, the state treasurer and principal fiduciary of the $26.3 billion pension system.
BNY Mellon replaces State Street Bank & Trust Co., whose contract expires June 30. The new 10-year contract becomes effective July 1 pending successful contract negotiations.
Ms. Nappier chose BNY Mellon due to “competitive pricing and the added value of the services offered by BNY Mellon beyond the parameters of core custody services that are most relevant to the Connecticut Retirement Plans & Trust Funds needs at this time,” she said.
Ms. Nappier announced her decision Wednesday at a meeting of the state investment advisory council, which advises the treasurer on investment policies.
In March, Ms. Nappier announced the hiring of Deutsche Bank to handle securities lending for the state pension system. Previously, State Street had been responsible for both the master custodian and securities lending jobs.
Ms. Nappier also announced that she had approved a commitment of up to $100 million to Landmark Equity Partners XV, a private equity fund “being formed to acquire investments primarily through secondary market transactions.”
The Connecticut Retirement Plans & Trust Funds previously invested $240 million in two other funds managed by private equity firm Landmark Partners, according to an April 3 document provided to the advisory council by the treasurer's office.
Separately, the Connecticut Retirement Plans & Trust Funds — which comprises six state pension funds and nine state trust funds — reported a return on its investments of 4.37% for the three months ended March 31, the third quarter of its fiscal year. The nine-month return was 12.07% as of March 31.