Morgan Stanley Investment Management (MSIM) is to outsource investment manager operations to State Street for approximately USD300 billion in assets.

The service will include trade settlement, portfolio administration and reporting and reconciliation services for a majority of MSIM’s assets under management.

State Street will assume approximately 100 employees globally from MSIM and will support MSIM’s needs globally.

The deal builds on the two Wall Street giants’ 40-year relationship. Joanne Pace, chief operating officer of Morgan Stanley Investment Management, said the company will benefit from State Street’s “leading technology systems, depth of resources and commitment to excellence in customer service”.

Jay Hooley, president and chief operating officer of State Street Corporation, pointed out that in the period of rapid expansion within the global markets over the past decade, many investment managers’ legacy technology systems “need significant investment to keep pace with the servicing requirements of innovative new investment strategies”. 

State Street provides services for more than USD6 trillion in middle office assets to clients globally and its investment manager operations outsourcing solution covers all aspects of the trading cycle.

Trade matching and settlement through performance and client reporting functions are integrated into its full spectrum of accounting, custody and fund administration services.