Leicestershire CC drops Bank of New York as custodian
UK - The Bank of New York has lost a £1.6bn global custody mandate with the Leicestershire County Council pension fund after the fund re-tendered the mandate and found JPMorgan to be more cost effective.
Investment manager Colin Pratt cited lower costs and JPMorgan's clear commitment to remaining a major player in a consolidating industryas the major reasons for the transition. Even though we were with the Bank of New York for six years, the reason we made the transition from them, was cost pure and simple, Pratt said.
It’s fair to say that we had no concerns from our operational point of view with the Bank of New York as we had a great partnership. The simple fact was going with JP Morgan was more cost effective.
He added: The fact that we have UBS as an investment manager helped our decision making process. They recently underwent a review and took their customers to JP Morgan so that added some value for us.
In May this year, the fund tendered for an active currency manager to cover a currency overlay mandate worth £525m. The tender followed a strategic review in which the fund decided to implement currency overlay for its overseas equities, which make up about 35% of the fund's total exposure.
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