State Street Expands Partnership with Principal Financial Group for Mutual Fund Servicing | LeapRate | Online Trading Industry News, Broker Intelligence & Fintech Analysis
State Street Corporation (NYSE: STT) has been selected by Principal Financial Group to provide custody, fund accounting, and administration services for Principal Funds, the two companies announced on June 4, 2026.
The expanded mandate will see Principal leverage State Street’s integrated investment servicing platform and global operating scale to support the ongoing development of its mutual fund business. The move signals Principal’s strategic intent to align its operating model with scalable infrastructure as it broadens its investment offerings.
The appointment deepens a relationship that has spanned more than a decade, during which State Street has supported Principal across a range of investment vehicles, including exchange-traded funds (ETFs) and collective investment trusts (CITs).
Joerg Ambrosius, President of Investment Services at State Street, said the firm was well-positioned to enhance Principal’s operational efficiency as it enters its next phase of growth. “By bringing together our global scale, deep expertise and integrated servicing capabilities, we are well positioned to enhance operational efficiency and support the continued evolution of their investment products,” he said.
Kamal Bhatia, President and CEO of Principal Asset Management®, framed the decision as part of a broader outsourcing and strategic partnering strategy. “This transition reflects our focus on strategic partnering and outsourcing that accelerates our business for long-term profitable growth,” he commented.
State Street currently holds US$54.5 trillion in assets under custody and/or administration and US$5.6 trillion in assets under management, as of March 31, 2026, and operates across more than 100 geographic markets worldwide.
