University of Texas/Texas A&M Investment Management Co., Austin, retained Bank of New York Mellon as the system's master custodian during a board of director's meeting Thursday, according to an audiocast.
The bank has served as the master custodian of the UT system's endowment and operating funds, which totaled $46.1 billion as of May 31, since Sept. 1, 1995. The current contract is for seven years.
Karen Adler, a UT spokeswoman, could not immediately provide terms of the new custodial contract, including the effective date and its length.
UTIMCO's decision to retain BNY Mellon must be approved by the UT Board of Regents at its Aug. 18 meeting.
Separately, because of the expected increase in assets under UTIMCO's management to about $91 billion over the next 10 years and the increasing complexity of the investment portfolios, the company must expand its staff, said Richard Hall, deputy chief investment officer, in a presentation to directors.
Mr. Hall said UTIMCO expects to hire 30 to 33 employees over the next five years with about 14 people each working in investments and operations and two people in information technology, the audiocast said.
UTIMCO will waste no time in recruiting new employees, mostly at junior levels, and intends to bring on six investment staffers, seven operational specialists and two IT people in 2020, Mr. Hall told directors during his presentation about the company's five-year work plan.
As of May 31, UTIMCO managed a total of $33 billion in two endowment funds with $22.3 billion in the Permanent University Fund and $10.7 billion in the Long Term Fund.
