State Street has landed a ‎€500bn fund services mandate in Germany and will take on a fund operations joint venture as part of the deal.

Both Allianz Global Investors and Deka Bank have chosen the US custody giant to perform a range of investment services.

The mandate covers fund accounting, fund administration, data management and reporting on €500bn of assets.

Dealis Fund Operations, a joint venture set-up by DekaBank and Allianz Global Investors in 2009, had been providing the services.

But State Street said on Monday that it will start running the Dealis technology itself and move close to 350 staff onto its books.

The move comes amid increasing competition and consolidation in the fund administration market, highlighted by a number of recent mergers and acquisitions.

“This appointment reflects State Street’s strong commitment to Germany as one of our key markets in Europe,” said Jeff Conway, chief executive officer of State Street in Europe Middle East and Africa (EMEA).

“With an expanded technology infrastructure, our clients will benefit from an enhanced product offering and end-to-end technology platform,” he added.

Michael Hartmann, chairman of the shareholders' committee of Dealis and head of European operations at Allianz Global Investors, says the goal is to expand Dealis’ business model.

“An excellent starting point to achieve those goals can be provided by a strong partner whose core competences are also fund administration services and who additionally offers a broad range of services in the custody of securities.

“With State Street, we have found this strong partner to create new perspectives for the service delivery in Germany.”