WALES - The Bank of New York and JP Morgan Investor Services have been dropped from providing custody services to the Torfaen County Borough Council Pension Fund.
Instead, the £700m fund has opted for ABN AMRO Mellon to manage the new global custody account. The firm will also provide investment accounting, securities lending, performance measurement and analytics.
Deputy director of finance, Graeme Russell, said that ABN was one of seven firms asked to tender. Both JP Morgan and BoNY were invited to reapply but Russell did not disclose any further details.
Both custodians were the preferred providers of the fund’s managers, Gartmore Investment Management and Barclays Global Investors.
The duration of the new contract is 3 years in the first instance, added Russell.
Also commenting on the appointment, director of finance for the council Philip Nash said: Our decision to appoint a global custodian was based on an increased need for consolidated reporting and the desire to benefit from value-added services.
ABN AMRO Mellon demonstrated that it has the best systems, services and people to meet these requirements.
Local authority wins are highly sought after in the market and fiercely competed over, which makes it all the more satisfying for us when we win clients such as Torfaen, said Nadine Chakar, chief executive officer of ABN AMRO Mellon.
Our continuing success in this market is testament to the qualityof our products and services.
The appointment is the first in an overhaul of the fund’s investment structure.
As part of the shift to a largely active specialist portfolio, Torfaen culled a £257m UK equities brief held by Gartmore. BGI will continue to manage the remainder of the portfolio that is not being activated.
Torfaen recently issued a raft of specialist mandates worth a combined value of £490m.
Torfaen has approximately 32,000 members, comprising some 18,000 active contributors, 4,000 preserved benefits and 10,000 pensioners.
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