05:37 AM EDT, 07/08/2024 (MT Newswires) -- (Updates with a response from State Street in the second-to-last paragraph.)

State Street (STT) has replaced UBS (UBS) as the custodian bank for a Swiss government compensation fund worth approximately 40 billion Swiss francs ($44.51 billion), Reuters reported Wednesday.

The decision to give the mandate to State Street was made in December after a two-year tender process, and the transfer should be completed by the end of the year, Reuters reported, citing Swiss independent public law institution Compenswiss, which manages the public pension fund.

The news was first reported by Swiss newspaper Tages-Anzeiger, which said UBS had been the fund's custodian bank for the past 26 years.

"We are proud that State Street has been named the custodian bank and portfolio administrator for the Swiss national pension plan," a State Street spokesperson said in an email to MT Newswires. "We look forward to working with the organization on the transition in the weeks and months ahead."

UBS did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)