Federated Returns To State Street Fold, Gives Up Service Bureau Strategy

PORTFOLIO MANAGEMENT

In yet another reversal of a business plan adopted by its former chief information officer, Jim Dolan, Federated Investors of Pittsburgh has handed the responsibility for its portfolio accounting system back to State Street Corp. of Boston. Neither the value nor the length of the contract was disclosed.Federated had been a State Street client for years, but in 1993, the mutual fund firm purchased a copy of State Street's Multicurrency Horizon system and began competing with State Street for