State Street Corporation has announced that it will provide custody, fund accounting, risk analysis and performance and analytics to a pension fund with approximately $1bn in assets under management.

Stichting Algemeen Pensioen Fonds Aruba (APFA), the Aruban pension fund designed for public sector workers has selected State Street "because of its experience in servicing pension funds in a fiduciary management structure".

"As a former Netherlands Antilles island, it is likely that we will adopt the Dutch regulatory framework for pension funds so it's in our best interests, as well as our clients, to work with a Dutch client service team who understands our challenges," said Mark Bakker, CIO and board member of APFA.

Roel van de Wiel, business development executive for State Street's Global Services business in the Netherlands, Belgium and the Nordic region said: "In a recent research study we undertook, we found pension funds in the Netherlands rated risk management, regulation and compliance, and market volatility among the most important challenges they face. With the likelihood of Aruban pension funds moving towards the Dutch pension fund framework we expect these will be key challenges for them as well."

APFA was launched in 2005 as a pension fund for public sector workers. The vision of the pension fund is to "contribute to the prosperity of the labour force of Aruba to offer affordable financial assurance to the participants of the pension scheme after retirement".

State Street currently has $23.4tn in assets under custody and administration, and $2.1tn in assets under management (30 September 2012). 

First published 06.12.2012

azeevalkink@wilmington.co.uk