U.S. Trust Corp. has snared a big mutual fund servicing contract with John Nuveen & Co., Chicago.
The New York-based bank will take over custody and account servicing on 21 Nuveen funds that previously were serviced by State Street Bank of Boston.
U.S. Trust already provides custody, fund accounting, and transfer agency services to 76 of Nuveen's funds with $22 billion of assets, according to the bank.
Nuveen plans to transfer the 21 open-end mutual funds, totaling more than $6 billion of assets, in September because of the "efficiency of having funds done through one source," said Ed Dunn, a Nuveen spokesman.
The move reflects Nuveen's trend toward consolidating services in all areas. U.S. Trust is also a known quantity, Mr. Dunn said.
Through the services now provided, U.S. Trust has demonstrated its "willingness to customize the types of services our clients need," said Frederick S. Wonham, vice chairman and head of U.S. Trust's fund services group, in announcing the deal last week.
"This significant new commitment from Nuveen cements the strength of the total partnership," Mr. Wonham said.
U.S. Trust has more than $28 billion of assets under management and over $350 billion of total assets under administration.