Northern Trust has said its focus on
year-end accounting and financial disclosures are behind its
latest local government pension scheme mandate, a sector where
the US custody bank now has 12 funds.
custodian said on Thursday it has been selected by Scottish
Borders to provide global custody, accounting, performance
measurement, cash management and foreign exchange services for
its £550 million in pension fund assets.
"Northern Trust has created a dedicated UK
Public Sector client service to ensure we are closely aligned
to meet the needs of this group," said Ian Hamilton,
institutional business development for UK, Europe and Africa at
The announcement with Scottish Borders
marks the twelfth local government pension scheme mandate
for Northern Trust. As of December 31 2016, assets under
custody of the 12 National Framework Agreement mandates total
$26.9 billion, according to the custodian.
"For over 20 years we have been supporting
and building our local government pension scheme (LGPS)
relationships through organic growth and currently work with
42% of the LGPS market," said Hamilton.
Northern Trust is already custodian to
eight out of the 11 Scottish local government pension schemes.
It said it supports 35% of the top 100 UK pension schemes,
ranging from £450 million to £16 billion in
"The LGPS are active in the market and
tender every five to seven years," said Hamilton. "The activity
depends on when different schemes decide to review the
"Roughly 50% of Northern Trust assets
under custody globally are from pension funds. This gives us
the ability to invest significantly in people, technology and
services to support our pension fund clients and this client
Northern Trust announced on February 20 it
is to acquire UBS Asset Management’s
fund administration servicing units in Luxembourg and
Upon completion of the transaction, which
is expected in the second half of 2017, Northern Trust will
become the fund administration services provider for funds
totaling approximately CHF 420 billion ($413 billion) in
In July last year, UK-based insurer Rothesay Life selected Northern Trust to
provide middle office service services for a portfolio of over
£20 billion in assets under management.
Northern Trust was also appointed by
offshore wealth manager Peregrine Guernsey earlier in the year to
provide global custody and fund administration services, as
reported by Global Investor in April.