The bank faced down competition by State Street Corp., Citigroup Inc., Northern Trust Corp., and Deutsche Bank AG, reported Nevada investment officer Laura Wallace.
The review was undertaken because the existing contract was expiring. “We were mindful of potential disruption” of choosing another vendor, said Wallace. “But that issue was not central to our choice. This was a very straightforward review of all aspects of service.” RFPs were disseminated in November, 1999, and the board voted to retain Bank of New York on March 22.
Bank of New York ultimately was chosen for its “client-oriented service culture, technology, and broad array of securities services,” said Wallace. The bank has served as the fund’s custodian since 1997. This was the first review by Nevada PERS.
The Nevada fund is a multiple employer, defined benefit pension plan serving 80,000 active employees and 20,000 retirees. The Bank of New York has $74 billion in assets. It has $6.3 trillion in global assets under custody.