State Street Corporation
NYSE : STT

State Street Corporation

March 08, 2005 09:02 ET

State Street Awarded $224 Billion Investment Servicing Mandate For Bank of America's Columbia Management Group


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STATE STREET

NYSE SYMBOL: STT

MARCH 8, 2005 - 09:02 ET

State Street Awarded $224 Billion Investment Servicing
Mandate For Bank of America's Columbia Management Group

BOSTON--(CCNMatthews - Mar 8, 2005) -

Factors in Appointment Include Ability to Provide Integrated Suite of
Investment Services and Proven Performance

State Street Corporation (NYSE:STT), the world's leading provider of
services to institutional investors, announced today that it has been
appointed to provide investment operations services to the fund
complexes of Columbia Management Group (Columbia Management), Bank of
America's asset management arm (NYSE: BAC). The move follows Bank of
America's acquisition last year of FleetBoston Financial and expands
State Street's existing relationship with Columbia Management as service
provider for their funds.

State Street will provide custody, fund accounting, and financial
reporting for $224 billion of Columbia Management's assets including the
Columbia, Nations, Acorn and Galaxy Funds and other managed assets.
Boston Financial (BFDS), a joint venture of State Street and DST
Systems, Inc. and a leading provider of automated shareholder
recordkeeping for mutual fund management companies, has been selected to
provide transfer agency services to the funds. The selections are
contingent upon completion of final contractual agreements.

"This is another important milestone for the mutual fund industry in
Boston," said Jay Hooley, executive vice president and head of global
investment services for State Street. "State Street was appointed to
service the first-ever mutual fund launched in 1924 and today we stand
ready to support Columbia Management as Bank of America embarks upon one
of the largest fund integrations in the industry's history. We are
delighted to expand our existing relationship with them and we look
forward to building a rich history together."

This new mandate builds on State Street's existing relationship with
Columbia Management during which it has successfully supported more than
50 fund mergers, 190 accounting conversions and 127 custody conversions,
over the past four years.

As part of the mandate, approximately 100 positions will be created
comprising approximately 40 in fund accounting and custody at State
Street and approximately 60 in transfer agency at BFDS.

"State Street and BFDS were selected on the basis of several critical
factors," said Christopher L. Wilson, Columbia Management's head of
mutual funds. "Columbia Management sought a fully integrated transfer
agency, custodial services and fund accounting platform. State Street
and BFDS are uniquely positioned to provide what we need," he explained.
"Reducing the number of vendors allows us to capitalize on efficiencies,
build consistent internal controls and manage risk more effectively.
Ultimately, this will improve the quality of service that we provide to
our shareholders."

State Street is the leading provider of fund accounting in the United
States, servicing more than 40 percent of the mutual fund industry, and
is the largest contributor of mutual fund NAV's to NASDAQ. In 2004,
State Street was named "Best Global Custodian for North American Mutual
Fund Managers" and "Best North American Sole Custodian" in Global
Investor magazine's 2004 Global Custody Survey. International Custody &
Fund Administration magazine also named State Street "European Mutual
Fund Administrator of the Year" in its 2005 European Custody and Fund
Administration Awards.

State Street Corporation (NYSE: STT) is the world's leading specialist
in providing institutional investors with investment servicing,
investment management and investment research and trading. With $9.5
trillion in assets under custody and $1.4 trillion in assets under
management, as of December 31, 2004, State Street operates in 25
countries and more than 100 markets worldwide. For more information,
visit State Street's Web site at www.statestreet.com.

About BFDS

BFDS, a joint venture of State Street Corporation and DST Systems, Inc.,
is a leading provider of automated shareholder recordkeeping for mutual
fund management companies. Over the past 30 years, BFDS has built its
position as the largest mutual fund transfer agent in the United States,
and today employs nearly 2,600 individuals and serves a client base of
over 21 million shareholder accounts.

About DST

DST Systems, Inc. provides sophisticated information processing and
computer software services and products that help clients improve
productivity, increase efficiencies, and provide higher levels of
customer service. DST is organized domestically and internationally into
three operating segments: Financial Services, Customer Management, and
Output Solutions. DST operates one of the most advanced data centers in
the world, which provides information-processing services to support the
products within each operating segment. These products are further
enhanced through the integration of DST's advanced technology and
e-commerce solutions.

About Columbia Management

Columbia Management, based in Boston, MA, is the primary asset
management organization of Bank of America. Columbia Management offers
products in every major asset class and investment style to both
individual and institutional investors. With over $330 billion in assets
under management, Columbia Management' is focused on delivering strong
investment performance and superior client service. (Assets as of
December 31, 2004)

About Bank of America

Bank of America is one of the world's largest financial institutions,
serving individual consumers, small and middle market businesses and
large corporations with a full range of banking, investing, asset
management and other financial and risk-management products and
services. The company provides unmatched convenience in the United
States, serving 33 million consumer relationships with more than 5,800
retail banking offices, more than 16,700 ATMs and award-winning online
banking with more than twelve million active users. Bank of America is
the No. 1 overall Small Business Administration (SBA) lender in the
United States and the No. 1 SBA lender to minority-owned small
businesses. The company serves clients in 150 countries and has
relationships with 98 percent of the U.S. Fortune 500 companies and 85
percent of the Global Fortune 500. Bank of America Corporation stock
(ticker: BAC) is listed on the New York Stock Exchange.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    State Street Corporation
    Hannah Grove, 617-664-3377
    or
    State Street Corporation
    Carolyn Cichon, 617-664-8672