State Street inks Morgan Stanley outsourcing deal

AP News
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Posted: Nov 30, 2009 10:47 AM

State Street Corp. will absorb 100 employees from Morgan Stanley Investment Management as part of a deal announced Monday to provide servicing for investments worth about $300 billion.

State Street, which specializes in providing financial services to institutional investors, will handle trade settlement, portfolio administration, and reporting and reconciliation services for most of the Morgan Stanley unit's $386 billion in assets under management.

The 100 workers are mostly in the U.S., but some are based in other countries, a State Street spokeswoman said. A Morgan Stanley representative declined to comment.

State Street shares added 54 cents to $40.74 in morning trading. Morgan Stanley gained 56 cents to $31.07.