RPMI Railpen hired Northern Trust to provide investment operation outsourcing services, said a spokeswoman for the pension fund.
Northern Trust was chosen to provide trade matching, derivative processing and lifecycle management, active collateral management and book of record services to the in-house manager of the £21 billion ($32 billion) Railways Pension Scheme, London.
“Over the last 18 months, RPMI Railpen has undertaken a strategically important investment transformation program, part of which required the development of in-house management as one of our implementation models, where previously we had relied almost exclusively on external investment managers,” said Nicola Dymond, chief operating officer, investments, at RPMI Railpen, in a news release from Northern Trust. “The in-house model allows us to reduce implementation costs and ultimately return value to the scheme and members. As part of this, Northern Trust gives us timely access to operational scale and breadth of capability without the associated capital expenditure.”