UK - The £450m Clwyd Pension Fund has appointed ABN Amro Mellon Global Securities Services to provide it with custody, investment accounting and securities lending services.
The Flintshire County Council administered fund chose ABN Amro Mellon from a shortlist of six – replacing its previous custodian, State Street. The move comes at a good time for ABN Amro – which is actively targeting the increasingly competitive local authority market.
ABN Amro Mellon chief executive officer Nadine Chakar said: “We are placing significant priority on the county council market segment, as part of our strategy for continued controlled growth.”
A Flintshire County Council spokesman said: “We adopted a rigorous selection process and are confident they will provide a wide range of services and value for money.”
The loss of the Flintshire mandate is the second State Street has suffered within the past two months.
The £1.6bn Scottish Power Pension Scheme dropped State Street as its global custodian in June and replaced it with Northern Trust.
And State Street could also lose its position as one of the six custodians to the £2bn Lancashire County Council Pension Fund, which is looking to hire a single global custodian.
Currently, Lancashire uses Citibank Global Securities Services, HSBC Asset Management, Legal & General Investment Management, JPMorgan Investor Services, Deutsche Bank and the Bank of New York.
The Clwyd Pension Fund – which is advised by Mercer Human Resource Consulting – has around 11,000 active, 2500 deferred and 7000 pensioner members.
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