State Street will provide the Finnish company with custody, fund accounting, transaction management, securities lending, futures clearing, agent fund trading, daily risk services, OTC derivatives servicing and collateral management for more than €5.6bn ($7.6bn) in AuM.
Etera is the third largest pension company in Finland.
“Given the Finnish and European regulatory challenges facing the industry, and our enhanced investment strategy we needed to look to future proof our current business model. The ability of State Street to address our needs and provide a holistic solution to our liabilities was extremely important to us” said Jari Puhakka, chief investment officer of Etera.
Asset owners need access to real-time data to optimise their investment decisions, said Paola Bergamaschi, head of asset owner solutions for State Street in Emea. “This helps explain why almost 9 out of 10 asset owners plan to invest in order management and execution management systems over the next three years.”
Etera is a mutual employment pension insurance company which provides pension cover for employees and self-employed persons and promotes well-being at work. It pays out approximately €1bn to 146,000 pension recipients each year and has €5.2bn invested to secure pension liabilities.