UK - Paternoster has appointed F&C Asset Management to act as its derivatives execution agent.
Paternoster was set up by ex-Prudential executive Mark Wood earlier this year to target the potentially lucrative market offered by overburdened defined benefit schemes looking to offload some of their liabilities.
Fernando Ribeiro, head of investments at F&C, described the pension consolidation market is "an exciting and innovative space", which he tipped for "significant" growth in the coming years.
He added: "Mandates to act as a derivative execution agent are a relatively new phenomenon, but this is indicative of the increasing level of sophistication of the institutional market place."
Ribeiro said F&C had "invested heavily" in its asset and liability management and derivative capabilities in recent times.
Earlier this month, Paternoster announced it had chosen State Street Corporation for its custody and securities lending services.
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