Chicago Public School Teachers' Pension & Retirement Fund hired Bank of New York Mellon as custodian and Deutsche Bank as securities lending agent and collateral manager.
The firms replace Northern Trust, which had provided all of the services, according to a news release on the $9.7 billion defined benefit pension fund's website. Northern Trust continues to manage $2 billion in pension assets.
“Our due diligence leads us to believe that the switch in our custodial and securities lending relationship at this time is in the best interest of the fund and our members,” Kevin Huber, the pension fund's executive director, said in the release.
Callan Associates, the pension fund's investment consultant, recommended that a separate custodian and securities lending agent be hired, according to the release. The pension fund issued an RFP last summer.
Carmen Heredia-Lopez, chief investment officer, could not provide further information by press time.