Following restructuring at the firm, TIAA-CREF has launched an asset management arm and outsourced its middle and back-office functions to Mellon GSS.
Russell/Mellon, the custodian’s affiliate, will provide performance measurement and analytics.
TIAA-CREF was at pains to point out that Mellon was not taking responsibility for administering the firm’s total $300bn (e244bn) of assets, but would provide custody for the $1bn already accrued in the new assetmanagement arm.
A spokesman said: “We are not outsourcing $300bn. This is a new business unit only recently launched. While we hope to build up to similar levels, the asset management arm is new.”
However, TIAA-CREF’s head of asset management, Nancy Heller, said that Mellon’s “numerous accolades throughout the industry” had helped seal the appointment.
According to FT Mandate research, Mellon GSS has picked up $22bn worth of publicly revealed custody business in the US since the start of 2004.
Most recently, the firm won a $19.5bn custody contract with the Texas Permanent School Fund.
In March, Mellon was a awarded $1.5bn custody brief with Santa Barbara County Employees Retirement System, and in January, the firm won a $1bn mandate with the Daughters of Charity endowment plan.
