Arizona State Treasurer's Office, Phoenix, hired State Street Bank as master custodian for the $4.1 billion Permanent Endowment Trust Fund, confirmed Mark Swenson, deputy state treasurer.
The firm will also serve as custodian for $9 billion in other investment pools overseen by the treasurer's office.
The treasurer's office issued an RFP in September due to the March 31, 2014, contract expiration of current custodian J.P. Morgan Chase. The firm rebid. Mr. Swenson would not provide finalist information.
The treasurer's office is studying the possibility of expanding into global equities and global fixed income along with Treasury inflation-protected securities, real estate investment trusts and U.S. public natural resources. The endowment trust fund currently has domestic equities and domestic fixed income only. A decision regarding new asset classes would likely come in the next six to 12 months.
State Street's three-year contract, with an option for two one-year extensions, begins April 1.
