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The Employees’ Retirement System of the State of Hawaii has named BNY Mellon the global custodian for its more than $12.3 billion in pension fund assets.
In addition to what’s called global custody, the New York-based firm also will provide securities lending, foreign exchange, cash management, and a wide range of global risk solutions services to ERS, BNY announced this morning.
For years, there has been a perception that ERS would not be able to meet their obligations to beneficiaries due to an $8.4 billion shortfall, but in February, Vijoy Paul Chattergy, the new chief investment officer, assured retirees the obligations would be met.
This morning’s announcement expands BNY Mellon’s involvement with ERS, according to Wesley Machida ERS executive director.
“BNY Mellon is a market leader whose team can help us implement best practices that enable us to be more efficient,” he said. “This appointment extends our existing relationship with BNY Mellon’s investment management and corporate trust businesses. As global custodian, we’ll get a partner with a robust set of products we can leverage both now, such as securities lending, and in the future.”
ERS provides retirement, disability, survivor and other benefits to more than 113,000 members that worked for the state of Hawaii or the counties.
BNY Mellon will provide global custody, securities lending, foreign exchange, cash management, and a wide range of global risk solutions services to ERS.
