Illinois custody business up for grabs

Illinois custody business up for grabs

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Bidding is underway for the custody and fund accounting business of the $3.9bn Illinois State Employees' Deferred Compensation Plan - a retirement plan for state employees.

An RFP has been issued by the Illinois State Investment Board (ISIB), the Chicago-based agency which oversees the fund and supervises a total of $16bn in assets altogether.

The mandate for the DC plan includes asset safekeeping, securities settlement, compliance monitoring, cash and FX management.

Meketa Investment Group, the plan's consultant, will open the responses and review each bid.

State Street, the incumbent global custodian, is entitled to rebid.

Under the current arrangement, it is believed that fees are paid to State Street in set quarterly amounts for performance and analytics services.

Proposals must be sent in by 27th July.

Securities lending isn’t part of the RFP, Global Investor/ISF understands.

Last year Deutsche Bank was appointed ISBI’s agent lender as part of a separate mandate, according to the ISBI's annual report. 

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