Rhode Island's Investment Commission on Wednesday chose BNY Mellon as its custodian bank for the state's assets of roughly $8 billion, General Treasurer Gina Raimondo announced.

Raimondo, who chairs the investment panel, said the initial contract will save the state more than $300,000 annually.

Her office issued a request for proposals in March for a custodial bank to oversee pension assets and cash.

The bank's services will include the settlement of all purchases and sales through the Federal Reserve System, the Depository Trust Co., or any other settlement facility; collection of all interest payments; settlement of all debenture payoffs; receipt and disbursement of all repurchase agreement collateral; performance reporting and portfolio analytics; proxy voting services; and class-action notifications and processing.

The bank has been building out in New England. Recently it named Rhode Island native Thomas Fay, the former chief investment officer of Citizens Bank, to direct its regional wealth management office in Providence, and to join a senior management team focused on expansion in the six-state region.

In February, the commission selected TIAA-Cref as the vendor to administer Rhode Island's new defined contribution program.

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