UK - Local authority schemes worth more than £8.3bn in assets have tendered for replacement custodians this year in what could result in a huge shake-out of the market.
And research by IPN’s sister publication, Professional Pensions, shows that five of these mandates have gone out to tender since the beginning of May.
The tenders mark a summer of frenzied activity for local authority schemes, many of which were already seeking new actuaries following Watson Wyatt’s withdrawal from the marketplace.
Councils which have made decisions on their custodians include:
- The £450m Flintshire County Council Clwyd Pension Fund, which appointed ABN Amro Mellon to replace Deutsche Bank.
- The £400m London Borough of Greenwich Superannuation Fund, which appointed State Street as global custodian last month. The appointment follows the fund’s decision to move away from balanced management towards a more specialist structure.
- The £160m Royal Borough of Kingston upon Thames Pension Fund which has appointed National Custodian Services – formerly known as Clydesdale Corporate Investor Services – to replace the Bank of New York. National Custodian Services will work alongside the incumbents UBS Global Custody and Investment Services.
Funds currently out to tender include Lancashire County Council Pension Fund, Lincolnshire County Council Pension Fund, London Pension Fund Authority and the Bath and North East Somerset Council Avon Pension Scheme.
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