UK - State Street Corporation has announced it will now provide Paternoster with collateral management services.
State Street already provides custody and securities lending for Paternoster. It said its collateral management service was designed to help manage, track and provide reports on collateralised transactions, allowing users more time to devote to achieving investment returns.
It comes as a response to increasing demand from institutional investors who use derivatives in their portfolios.
Paternoster’s chief executive Mark Wood said: “Collateral management is particularly important given our complex liability-driven investment style.”
State Street’s head of asset owner group in the UK, Alasdair Reid, said: “Following recent market volatility, we expect more and more closed defined benefit schemes to transfer their liabilities to the bulk annuity market.”
This week's edition of Professional Pensions is out now.
Ben Gunnee reflects on 2018 and talks about the Fiduciary Management trends to keep an eye on in 2019
Lloyds Banking Group secured 630,000 new pension customers last year, according to its 2018 annual results.
Guy Opperman has rejected calls to speed up changes to auto-enrolment (AE) despite increasing pressure to boost contribution rates and overall savings pots.