(February 22 – 11:40 ET) – Merrill Lynch Investment Managers Canada Inc. is outsourcing its fund accounting to State Street Corp.

State Street will assume fund accounting and daily pricing services for Merrill Lynch’s Canadian mutual funds. The funds comprise 41 portfolios with a total asset value of approximately $4.7 billion.

“This important expansion of our relationship with MLIM reflects the rising demand from investment management firms to outsource their investment services as they aim to focus on their core businesses — managing funds and servicing clients,” said David Toyne, managing director of State Street Trust Company Canada.

Effective January 1, 2001, State Street assumed all fund accounting and daily pricing services for Merrill Lynch’s U.S. retail mutual funds, comprising 227 portfolios with a total asset value of approximately US$163 billion.

“We are pleased to be among the first to outsource our fund accounting operations,” said Ben MacInnis, chief executive officer of Merrill Lynch Investment Managers Canada Inc. “This strategic alliance will help us focus on our core business of asset management so we can continue to provide superior service to our clients.”
-IE Staff