EUROPE - Swedish insurance giant Folksam has appointed Northern Trust global custodian for all of its US$17bn (e14bn) in insurance assets and mutual funds.
Folksam is one of Sweden’s biggest asset managers with some 70 offices throughout the country.
In addition to the mandate, Northern Trust will provide trustee services to Folksam via a new agreement with Swedish trustee Svenska Handelsbanken.
This is the first time a non-Swedish bank will be able to provide custody and related services to a Swedish mutual fund.
Commenting on the mandate win, Anne-Lise Winge (pictured), head of European sales for Northern’s Trust’s asset servicing business, said: “Folksam is one of the most eminent and distinguished insurance companies in the Nordic region and we are absolutely delighted they have chosen Northern Trust as their sole custody provider.
“We have worked very closely over an extensive period fine-tuning a service offering which is cutting-edge and will meet all of Folksam’s needs. Through our relationship with Svenska Handelsbanken we have established robust trustee services enabling clients to consolidate their mutual funds and discretionary assets with a global custodian for the first time in Swedish history.”
Winge added: “Northern Trust and Svenska Handelsbanken have worked closely with the regulator, Finansinspektionen, in order to propose and obtain approval of a solution that allows Swedish mutal fund businesses to opt for a global custodian who can also offer trustee services through a local provider.”
Folksam asset management chief operating officer Cecilia Ardstrom said: “With this decision we have taken a major step forward in helping to achieve some of our long term business objectives.”
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