Electrocomponents' £180m UK based Pension Scheme has replaced Deutsche Bank Global Institutional Services with Northern Trust as its new global custodian.
Northern Trust was selected from a shortlist of three, according to Paul Fuller, group benefits manager at the pension fund.
The contract will be signed within the next ten days. The shortlisted candidates were previous incumbent Deutsche Bank Global Institutional Services, Northern Trust and the Bank of New York.
The mandate was put out to tender after a study was conducted by consultants William M Mercer. As a result, the fund decided to reduce administrative complexity by appointing a single global custodian as part of its move from balanced to specialist management.
By Geoffrey Ho
This week's edition of Professional Pensions is out now.
Nearly 60% of UK employers consider defined contribution (DC) master trusts to be the "most suitable" pension fund for their employees, according to research by Buck.
Companies which have tried to dodge their pension duties by changing their identities are being "hunted" by The Pensions Regulator (TPR) in a crackdown on non-compliance with auto-enrolment (AE).
Removing liquidity restrictions would enable DC funds to capitalise on the potentially higher and safer returns that DB schemes have benefitted from, says Patrick Marshall.