UK - The £2bn Lothian Pension Fund has dropped The Bank of New York as global custodian for its overseas assets, appointing Citigroup Global Transaction Services as the new provider.
The appointment was made at the end of BNY’s five-year contract.
Global Transaction Services, a division of Citigroup Corporate and Investment Banking, has been appointed to provide custody and stock lending services for all assets excluding UK equities (for which custodial services are provided by an in-house team) - a total of £1.3bn of assets under custody.
Commenting on the announcement a Lothian Pension Fund spokeswoman said: “Citigroup is a significant provider of global custody and stock lending services with an extensive proprietary sub-custodian network. We were particularly impressed by Citigroup’s cost effective and secure solutions to our custody and related services needs, as well its proactive approach to ensuring a consistently high quality of service.”
Mark Kelley (pictured), managing director, head of Fund Services EMEA, Global Transaction Services, Citigroup added: “We are delighted to have been selected by Lothian Pension Fund who has acknowledged the considerable risk minimisation realised through Citigroup’s unique use of proprietary sub-custodians in 43 markets. We look forward to working with Lothian Pension Fund and delivering on our service commitments.”
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