CIBC Mellon has been appointed by Canadian Airlines to provide trustee and custodial services for its' C$2.6bn (US$1.69bn) pension fund.
Canadian Airlines was acquired by Air Canada in December 1999, and with its new mandate win, CIBC Mellon is now the sole provider of Air Canada's total pension assets under administration.
Air Canada Pension Investments is the body that runs both schemes, the C$6bn (US$3.9bn) Air Canada pension fund and the C$2.6bn Canadian Airlines retirement plan.
CIBC Mellon currently provides Air Canada with pension trustee services, including cash and securities administration in Canadian and foreign markets; Canadian and global securities lending; and performance analytics. The same services will be provided for the Canadian Airlines pension fund.
Speaking about CIBC Mellon’s appointment to the Canadian Airlines pension fund, Gilles L'Abbe, president of Air Canada Pension Investments, said: When we originally selected CIBC Mellon, we were looking for a provider who had state-of-the-art technology and was committed to the custody business. Over the years, they have proved themselves in these areas, and with their strength in client service, we decided they were the right provider for all our custodial needs.
CIBC Mellon is a 50-50 joint venture between Canadian Imperial Bank of Commerce and the Pittsburgh-based Mellon Financial. Air Canada was CIBC Mellon’s first client when the firm was formed in 1996.
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