New Mexico State Board of Finance, Santa Fe, hired Northern Trust as global custodian for two state pension funds and two state agencies, with a combined total of $28 billion in assets, according to Mark Valdes, board director. The firm will provide custody for the $6.2 billion New Mexico Education Retirement Board, $5.7 billion Public Employees Retirement Association, State Investment Council and State Treasurer's Office. Northern Trust replaces State Street Corp., which acquired the previous custodian, Deutsche Bank. Mr. Valdes said Northern Trust offered a 20% discount on the cost of custody from what other firms offered.
Separately, Smiths Group PLC, London, hired Northern Trust as global custodian for its £2 billion ($3.3 billion) in pension assets, said Richard Jurek, Northern Trust spokesman. Smiths Group currently runs two pension schemes, the £1.2 billion TI Group Pension Scheme and the £739 million Industries Pension Scheme. Mercer Investment Consulting assisted. Officials at Smiths Group did not return calls by press time seeking details or comment.