Mendocino County Employees' Retirement Association, Ukiah, Calif., hired State Street as custodian, said James Wilbanks, retirement administrator.
The $444 million pension fund, which had been operating without a custodian since 2011, issued an RFP in June. The other finalist was Wells Fargo.
Separately, the pension fund terminated Janus Capital Group as an international equity manger due to performance, Mr. Wilbanks said. MCERA had $17 million invested in the Janus Overseas Fund that will be rebalanced among existing international equity managers.
A Janus spokeswoman declined to comment.
Also because of performance concerns, the pension fund decided to closely monitor domestic midcap equity managers Morgan Stanley Investment Management and Royce & Associates.
Morgan Stanley manages $4.9 million in growth equity for the pension fund and Royce, $4.8 million in value equity.
MCERA does not have a formal watch list.
A Morgan Stanley spokesman declined comment. A Royce spokeswoman could not be reached for comment by press time.