M&G Corporate Services, a unit of M&G, has selected State Street to offer outsourced middle office services.
The agreement follows a decade-old strategic partnership between the companies.
The asset manager will extend its existing fund accounting and custody services for the wholesale fund ranges to offer middle office services under the new agreement.
These include reference data, portfolio services, transaction management, cash reporting, asset servicing and recordkeeping.
State Street said it will leverage BlackRock’s Aladdin platform, which licensed by M&G, to carry out these services. The service model comprises the use of Aladdin Accounting and Aladdin PDX messaging.
State Street, which actively uses Aladdin data exchange (PDX) and the Aladdin middle office model, was one of the founding partners of Aladdin Provider.
State Street Europe, Middle East, and Africa chief executive officer Joerg Ambrosius said: “We are committed to providing solutions for a wide range of our clients’ needs including our State Street AlphaSM clients who can utilise both Aladdin and State Street product and services.
“This marks another important step in helping asset managers to stay focused on their investment process, lower their costs, improve efficiency and deliver desired investment outcomes.”
As part of the development, several M&G employees are expected to move to State Street’s London office by 1 July 2021 under a TUPE arrangement.
M&G chief operating officer Roddy Thomson said the agreement is part of the company’s five-year transformation programme to position it for sustainable long-term growth.
Thomson added: “It will enable us to focus on what we do best as investment managers, while developing a truly global and scalable investment operation in partnership with State Street.”
Last week, State Street said it will offer technology to support the new wholesale digital currency trading platform of Pure Digital for institutional investors.
State Street reported a fall in both net income and revenue in Q4 2020, amid a low rate environment.