State Street Corporation has been awarded a mandate to provide global custody, fund accounting and performance measurement by Hongkong Electric's $300 million retirement fund.

This is a significant win for State Street because it is the first regional client to convert from the $1.5 billion acquisition of Deutsche Bank's global custody business, which was finalized in February. That deal represented $2.2 trillion of assets, most from the US and Europe, and included Deutsche Asset Management's business. (Deutsche Bank has retained its Asian sub-custody business).

State Street officials say some important points in clinching the mandate included a strong team on the ground in Hong Kong that could provide Hongkong Electric with better service. Its technological capabilities also played an important role. For example, Hongkong Electric received customized reports from Deutsche Bank through a largely manual process; State Street has convinced the company that it will be able to automate much of that function.

Karina Li, Hongkong Electric's treasurer, praised State Street's tem approach, specialized technology and wide product offering. "We are confident that they will provide us with the global reach and local expertise we need," she says. The company has supplied Hong Kong's electricity for more than 110 years.

Among the products that State Street has impressed with - and will try to sell - include compliance reporting and commission recapture.

State Street officials are confident that as much as 95% of the regional client list let go by Deutsche's sale will convert in the coming weeks.