The Northern Pool partnership of three U.K. local pension funds hired Northern Trust as custodian, said Owen Thorne, portfolio manager at the Merseyside Pension Fund, Liverpool, England.
The contract includes custodial and administration services, securities lending, private equity fund administration, compliance monitoring and carbon reporting for the three pension funds, which make up the £46 billion ($65.5 billion) pool. In addition to Merseyside, the Greater Manchester Pension Fund, Manchester, and the West Yorkshire Pension Fund, Bradford, are members.
"Merseyside's present global custodian is Northern Trust ... appointed in 2013 following a competitive tendering exercise," Mr. Thorne said. "Merseyside will shortly be transferring to the Northern Pool arrangements with Northern Trust, as part of the implementation of our pooling policy," he added.
Greater Manchester Pension Fund's former custodian was HSBC Securities Services, while West Yorkshire Pension Fund's assets were in J.P. Morgan's custody.
Ian Greenwood, chairman of the Northern Pool, said in a news release: "We appointed Northern Trust based on their proven experience in the U.K. pensions market and their ability to offer us a range of holistic reporting, custody and alternative administration solutions, in accordance with the government's requirements of putting the highest and most expedient levels of regulation and asset safety at the heart of the Northern Pool."