Cambridgeshire County Council Pension Fund, Cambridgeshire, England, and Northamptonshire County Council Local Government Pension Scheme, Northamptonshire, England, appointed Northern Trust as global custodian, said Tolu Osekita, manager of the investments for both funds.
The appointments cover approximately a collective £4 billion ($6.8 billion) of pension fund assets; Northern Trust will also provide fund accounting and securities lending.
The pension funds made the appointments through the National LGPS Global Custodian Framework, a procurement service run by the local government pension schemes in the U.K., which compiled a list of approved custody and asset servicing providers last year.
Mr. Osekita said both funds contracted with the custodian independently, but ran a joint procurement process and will be served by the same team. That will deliver “further economies of scale,” he said in an e-mailed comment.
Northern Trust already was custodian for the £1.7 billion Northamptonshire fund. The custodian replaced Bank of New York Mellon as the £2.2 billion Cambridgeshire fund's provider.