US - The $22bn Employees Retirement System of Texas (ERS) has selected Deutsche Bank as its new securities lending provider, replacing JP Morgan Chase.
The fund issued a request for proposal in July 2010 and received 10 responses. ERS narrowed proposals down to three finalists: Deutsche Bank, BNY Mellon and State Street Bank.
After ERS staff became aware of significant organisational turnover in State Street Bank's securities lending department, State Street Bank was removed from further consideration as a finalist, according to a board meeting agenda item.
The agenda item said: "Based on the RFP responses and the onsite visits, we feel that Deutsche's securities lending capabilities are superior to those of BNY Mellon."
"The most compelling aspects include the tenure of the securities lending team, their selective addition of clients, their lending philosophy that is focused on maximizing intrinsic revenue, and their ability to and experience in customizing securities lending program for clients."
"These aspects make Deutsche's capabilities attractive and beneficial for clients like ERS that have a significant allocation of specials within their portfolios."